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Big Bath Accounting och bonus i börsnoterade företag
Örebro University, Swedish Business School at Örebro University.
Örebro University, Swedish Business School at Örebro University.
2011 (Swedish)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

A company may use different accounting techniques to adjust accounting information and thereby attract investors. Big Bath Accounting is defined as a strategy used to make changes in the financial statements and reduce the results further when the companies expect negative results. This phenomenon has been observed empirically and occurs when including CEO change and negative results. The aim of this study is to test whether there is another factor affecting Big Bath Accounting, namely remuneration of the CEO. The CEOs should, by changing the accounting information, be able to influence their compensation. Big Bath Accounting is defined as a strategy used in companies to increase their discretionary accruals (which consists of provisions, depreciation and amortization). A total of 195 annual reports have been studied (in each of the 39 companies five annual reports have been studied). The variables have been operationalized and analyzed by a regression analysis. The result of this study shows that the hypothesis stating that there is a positive correlation between the remuneration of the CEO and Big Bath Accounting can be rejected. The survey also shows that some industries show stronger tendencies of Big Bath Accounting and that some specific industries exhibit greater relation between the remuneration of the CEO and discretionary accruals. The conclusion is however that we cannot prove a positive relation between Big Bath Accounting and remuneration to the CEO.

Place, publisher, year, edition, pages
2011. , 38 p.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:oru:diva-15455ISRN: ORU-HHS/FEK-AS-2011/0012--SEOAI: oai:DiVA.org:oru-15455DiVA: diva2:414426
Subject / course
Företagsekonomi
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2011-05-25 Created: 2011-05-03 Last updated: 2011-05-25Bibliographically approved

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fulltext(631 kB)344 downloads
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Type fulltextMimetype application/pdf

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Swedish Business School at Örebro University
Business Administration

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