Corporate Governance and Earnings Management in a Nordic Perspective: Evidence from the Oslo Stock Exchange

Frode Kjærland, Ane Tolnes Haugdal, Anna Søndergaard and Anne Vågslid
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Frode Kjærland: NTNU Business School, Norwegian University of Science and Technology, NO-7491 Trondheim, Norway
Ane Tolnes Haugdal: NTNU Business School, Norwegian University of Science and Technology, NO-7491 Trondheim, Norway
Anna Søndergaard: NTNU Business School, Norwegian University of Science and Technology, NO-7491 Trondheim, Norway
Anne Vågslid: NTNU Business School, Norwegian University of Science and Technology, NO-7491 Trondheim, Norway

JRFM, 2020, vol. 13, issue 11, 1-18

Abstract: The purpose of the study is to examine the relation between Nordic corporate governance practices and earnings management. We find that the presence of employee representation on the board and the presence of an audit committee are both practices that reduce the occurrence of earnings management. Moreover, we find that both board independence and share ownership by directors positively affect earnings management, while board activity and directors as majority shareholders show an insignificant relation to earnings management. We contribute to the existing literature on corporate governance and earnings management by providing valuable insight into the Nordic corporate governance approach and its potential in mitigating earnings management.

Keywords: accrual earnings management; corporate governance; Nordic model (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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