The Effect of Friendly Boards on Asset Prices: Evidence From Stock Price Crash Risk

Avishek Bhandari, Md Nazmul Hasan Bhuyan, Md Noman Hossain, Meena Subedi, University of Wisconsin-Whitewater, North Carolina A, T State University, California State University Fullerton, Carroll University

Journal of Accounting, Auditing & Finance

Published online on September 02, 2025

Abstract

Journal of Accounting, Auditing & Finance, Ahead of Print.
This study provides statistically and economically significant evidence that friendly boards are positively associated with firm-specific stock price crash risk. The findings suggest that firms with friendly boards are prone to groupthink-induced biases, ...