What Do Independent Directors Know? Evidence from Their Trading

We would like to thank Yakov Amihud, Patrick Bolton, Menachem Brenner, Eliezer Fich, Ilan Guedj, Kose John, Patricia Ledesma, Debbie Lucas, Randall Morck, Holger Mueller, Bernt Odegaard, Matthew Richardson, Ioanid Rosu, Carola Schenone, Geoffrey Tate, Michael Weisbach, David Yermack, seminar participants at Columbia University, the Federal Reserve Bank of New York, Georgetown University, New York University, Northwestern University, and participants at the 2006 WFA Annual Meeting, the 2006 North American Summer Meeting of the Econometric Society, the 2006 SED Annual Meeting, and the Olin Washington University 3rd Annual Conference on Corporate Finance for their comments. We also thank Eliezer Fich for sharing his board size data with us. All remaining errors are our own. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.