Does personal liability deter individuals from serving as independent directors?

This study examines whether personal liability for corporate malfeasance deters individuals from serving as independent directors. After the introduction of in India, we find that are deterred on boards. We stronger deterrence among firms with greater litigation and regulatory risk, higher monitoring costs, weak monetary incentives. Expert directors more likely to exit, resulting 1.16% lower firm value. further evaluate contemporaneous governance reforms market developments contribute this deterrence. Overall, our results suggest high reputational costs