Corporate governance and management incentives: evidence from the Scandinavian countries
ISSN: 1472-0701
Article publication date: 15 December 2017
Issue publication date: 23 January 2018
Abstract
Purpose
The Scandinavian boards are known for their “best practices” for corporate governance. This paper aims to examine the management incentives behind corporate disclosure via an empirical study.
Design/methodology/approach
Many of the previous empirical work have focused on the US data, but the generalizability of such findings is geographically bounded. The set of management incentives in this paper is examined using a total sample of 123 local annual reports via some of the largest publicly listed firms in the Scandinavian countries between the years 2008-2012.
Findings
The findings of this study reveal that a firm’s financial success originates from the different attributes of corporate governance. Correlation and regression analyses reveal that in terms of firm size, leverage ratio, the existence of audit committee and the independence of CEO, there is a correlation between firm-specific factors and the level of disclosure. In contrast to the previous literature, a positive relationship between corporate disclosure and information asymmetry was not found.
Originality/value
The results of this study are valuable to the policymakers when implementing regulations on corporate governance control. The strategic implications of the findings on business decisions and future research are also discussed.
Keywords
Acknowledgements
An earlier version of this paper was present at the Accounting Research Day at the University of Ghent, March 2016. The authors are extremely grateful for the valuable feedback and contribution of Professor Heidi Vander Bauwhede, Professor Philippe Van Cauwenberge, Professor Mirjam Knockaert and Dr Elia Liitiäinen. The authors express sincere gratitude to the honorable Editor-in-Chief Professor Gabriel Eweje and two anonymous reviewers whose suggestions have resulted in major improvements in this paper. Any remaining errors are entirely the authors’ responsibility.
Citation
Xia, B.S. and De Beelde, I. (2020), "Corporate governance and management incentives: evidence from the Scandinavian countries", Corporate Governance, Vol. 18 No. 1, pp. 1-13. https://doi.org/10.1108/CG-04-2017-0075
Publisher
:Emerald Publishing Limited
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