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Does board structure affect stock price overshooting informativeness measured by stochastic oscillator indicators?

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  • Yensen Ni
  • Yirung Cheng
  • Yulu Liao
  • Paoyu Huang

Abstract

We explore whether our proposed proxies for stock price overshooting informativeness and the days falling into overbought (oversold) zones defined by the SOI over the total number of trading days in a year (hereafter referred to as OB‐ratio [OS‐ratio]) would be affected by the function of the board structure and by financial performance. Results show that firms with high OS‐ratio (OB‐ratio) are those with ill‐functioning (well‐functioning) board structures and inferior (superior) financial performance. Thus, we argue that our new proxies could be employed to gauge board structure function and even financial performance.

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  • Yensen Ni & Yirung Cheng & Yulu Liao & Paoyu Huang, 2022. "Does board structure affect stock price overshooting informativeness measured by stochastic oscillator indicators?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2290-2302, April.
    • Handle: RePEc:wly:ijfiec:v:27:y:2022:i:2:p:2290-2302
    DOI: 10.1002/ijfe.2273
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