Ownership Structure and Board of Directors: Evidence from Scandinavian traded companies

Abstract

The aim of the study is to examine the characteristics of company major owners’ types and ownership concentration and their impact on board independence using data of Scandinavian traded companies. The board independence is viewed in the actual study as an indicator of corporate governance trustworthiness for risk averse investors. The study focuses on corporate governance national models that perceive corporate governance issues in connection with economic, legal, political and other institutional conditions within a particular country. This approach is used to identify and discuss factors influencing controlling owners’ incentives in corporate governance decision making process as well as to investigate the corporate governance environment from the point of view of a potential investor.