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

Author

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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)

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.

Suggested Citation

  • Frode Kjærland & Ane Tolnes Haugdal & Anna Søndergaard & Anne Vågslid, 2020. "Corporate Governance and Earnings Management in a Nordic Perspective: Evidence from the Oslo Stock Exchange," JRFM, MDPI, vol. 13(11), pages 1-18, October.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:11:p:256-:d:436911
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    2. Ishwar Khatri, 2023. "Board gender diversity and sustainability performance: Nordic evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1495-1507, May.

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