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Executive compensation disclosure, ownership concentration and dual-class firms: An analysis of Swedish data
Department of Business Studies, Uppsala University.
Univ Stavanger, Dept Accounting & Law, N-4036 Stavanger, Norway..
Department of Business Studies, Uppsala University.
2021 (English)In: Journal of International Accounting, Auditing and Taxation, ISSN 1061-9518, E-ISSN 1879-1603, Vol. 45, p. 18-, article id 100429Article in journal (Refereed) Published
Abstract [en]

We study how executive compensation disclosure (ECD) is affected by the economic incentives of owners and managers in a Swedish setting where agency conflicts are not so much between managers and owners, but between controlling and non-controlling owners. In our sample, control is often enhanced through mechanisms such as dual share classes. The analysis relies on detailed hand-collected ECD data from 2837 annual reports. As expected, disclosure decreases with ownership concentration and the owner’s excess voting rights. In Sweden, overpaid Chief Executive Offices (CEOs) improve ECD quality, but this is not the case when the controlling owner has excess control rights. This suggests that when managers have a bond with controlling owners, ECD is part of the agency problem between controlling and non-controlling owners, and executive compensation plays a different role than in previously studied Anglo-Saxon settings.

Place, publisher, year, edition, pages
2021. Vol. 45, p. 18-, article id 100429
Keywords [en]
Executive compensation, Disclosure Sweden, Dual class shares, Agency problems
National Category
Business Administration
Research subject
Business and IT
Identifiers
URN: urn:nbn:se:hb:diva-27868DOI: 10.1016/j.intaccaudtax.2021.100429ISI: 000728179500004Scopus ID: 2-s2.0-85123715117OAI: oai:DiVA.org:hb-27868DiVA, id: diva2:1657741
Available from: 2022-05-12 Created: 2022-05-12 Last updated: 2022-05-12Bibliographically approved

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Vural, Derya

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CiteExportLink to record
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Citation style
  • harvard-cite-them-right
  • apa
  • ieee
  • modern-language-association-8th-edition
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  • Other style
More styles
Language
  • de-DE
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  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
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