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How Does Board Structure Influence CEO Compensation? - Evidence from Sweden

Axelsson, Fredrik and Johansson, Lina (2006)
Department of Business Administration
Abstract
The purpose of the study is to investigate how board structure influences CEO compensation for companies listed on the Stockholm Stock Exchange in 2004. The theoretical frame of reference is based upon the corporate governance theory, the principal-agent theory and previous empirical research in the area. A cross sectional regression analysis is used, where a number of control variables are included and significance tests are conducted. The study is based on information regarding CEO compensation, and possible factors affecting the compensation, from 267 companies listed on the Stockholm Stock Exchange A- and O-list in the year 2004. We find that the board structure has no significant effect on the CEO compensation. Instead, the firm size,... (More)
The purpose of the study is to investigate how board structure influences CEO compensation for companies listed on the Stockholm Stock Exchange in 2004. The theoretical frame of reference is based upon the corporate governance theory, the principal-agent theory and previous empirical research in the area. A cross sectional regression analysis is used, where a number of control variables are included and significance tests are conducted. The study is based on information regarding CEO compensation, and possible factors affecting the compensation, from 267 companies listed on the Stockholm Stock Exchange A- and O-list in the year 2004. We find that the board structure has no significant effect on the CEO compensation. Instead, the firm size, as measured by the firm’s total assets, number of employees and whether any CEO stock options exist are strongly significant determinants for CEO compensation. (Less)
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author
Axelsson, Fredrik and Johansson, Lina
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Board Structure, CEO Compensation, Corporate Governance, Cross-sectional Regression, Swedish Code of Corporate Governance, Management of enterprises, Företagsledning, management
language
Swedish
id
1349784
date added to LUP
2006-01-18
date last changed
2012-04-02 15:51:26
@misc{1349784,
  abstract     = {The purpose of the study is to investigate how board structure influences CEO compensation for companies listed on the Stockholm Stock Exchange in 2004. The theoretical frame of reference is based upon the corporate governance theory, the principal-agent theory and previous empirical research in the area. A cross sectional regression analysis is used, where a number of control variables are included and significance tests are conducted. The study is based on information regarding CEO compensation, and possible factors affecting the compensation, from 267 companies listed on the Stockholm Stock Exchange A- and O-list in the year 2004. We find that the board structure has no significant effect on the CEO compensation. Instead, the firm size, as measured by the firm’s total assets, number of employees and whether any CEO stock options exist are strongly significant determinants for CEO compensation.},
  author       = {Axelsson, Fredrik and Johansson, Lina},
  keyword      = {Board Structure,CEO Compensation,Corporate Governance,Cross-sectional Regression,Swedish Code of Corporate Governance,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {How Does Board Structure Influence CEO Compensation? - Evidence from Sweden},
  year         = {2006},
}