摘要：Background: Board independence is important factor to increase firm value and earnings quality by monitoring and evaluate management. In addition, firm value and earnings quality are differently related to the quality of board. Materials and Methods: This study tests how quality of outside directors affects firm value and earnings quality of Korean listed firms using panel data during the period 2000-2012. This study classifies quality of outside directors into three categories: (1) Non financial experts, (2) Financial experts and (3) Gray experts. Results: This study finds that outside directors on board positively affects firm value but not earnings quality. In the view of quality of outside directors, only finance experts increase firm value but do not affect earnings quality. Conclusion: The role of outside directors on board of Korean firms is limited. High firm value and earnings quality results from quality of outside directors rather independence. This study provides empirical evidence that board quality plays on important factor to increase firm value and earnings quality in selecting outside directors on board.
