The Frequency of Earnings on the Swedish Stock Market

Handelshögskolan i Stockholm Kandidatuppsats inom kurs 639 Redovisning och Finansiering Vårterminen 2011 Fördelning av resultat på den svenska börsen Abstract This paper replicates a test performed by Burgstahler and Dichev (1997), which identifies a kink in the frequency distri saveion of boodle for companies listed on American stock exchanges. Their claim, that the kink is evidence of remuneration perplexity, has however been dismissed as a methodical consequence. To shell out this concern, this paper not only replicates the test in general, but also performs tests on a split sample, where founding family-owned companies argon separated from the others, since earlier research has shown that founding family self-control is tally with less earnings management. The results are in line with the findings of Burgstahler and Dichev, with a significant kink in the frequency distribution in the general test. The findings also show that the significance of the kink increases in the non-family-owned sample, while it disappears in the family-owned sample. This could indicate that the frequency distribution is a valid test of earnings management, hence this paper adds to the front research that shows a correlation between founding family ownership and less earnings management.

Key words: earnings management; kink; frequency distribution; founding family ownership Författare: 21492, female horse Belfrage* 21711, Sara Wilhelmsson** Katerina Hellström 27 maj 2011, kl. 13.15-17.00, sal 538 **21711@student.hhs.se Handledare: Framläggning: *21492@student.hhs.se Innehållsförteckning 1. Inledning .............................................................................................................................3 2. Teoretisk referensram .........................................................................................................4 2.1 Studier av snedfördelningen .........................................................................................4... If you want to get a full essay, order it on our website: Orderessay

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