• Seminari: «The Nordic Model of Corporate Governance and Earnings Quality»

  • Start: Tuesday, 23 February 13:00
    End: Tuesday, 23 February 14:00
  • Universitat de les Illes Balears, Carretera de Valldemossa, Palma, Espanya
  • A les 13 hores.

    En línia.

    A càrrec de Laura Arranz-Aperte (Accounting).

    Using a unique dataset that contains information on all listed companies in OMX Helsinki between the years 2008-2016, we study the relation between earnings quality and CEO tenure, with a special focus on how features of the Nordic model of corporate governance might affect this relation. We find evidence suggesting different earnings reporting styles depending on the internal governance of the firm. The presence of shareholders nomination boards (proxy for strong monitoring boards and a special feature of the Nordic model of corporate governance) is positively related to the presence of negative discretionary accruals, and to downgrades in goodwill. Additionally, we do find evidence suggesting that CEOs suppress earnings in the first years of tenure, and that they boost earnings after their third year of tenure: negative discretionary-accruals (that might suggest depressed earnings) are more common in the first and second years of CEO tenure. We find evidence suggesting that the presence of SNB moderates these relations.