Does Board Independence Mitigate Potential Adverse Effects of Private In-House Meetings?

We examine the effectiveness of board independence in promoting positive aspects of private in-house meetings between management and investors while curbing opportunistic insider trading activities around these meetings. Consistent with private meetings having benefits, we find a positive association between board independence and (i) private meeting frequency, and (ii) timeliness of disclosures to the public. Consistent with reducing the potential costs of private meetings, we find an association between board independence and (i) relatively subdued market reactions to these private meetings, (ii) reduced insider trading frequency around private in-house meetings, and (iii) reduced insider trading profitability around private in-house meetings -- and in general among sample firms.