Big Bath på G: En kvantitativ studie om sambandet mellan bolagsstyrning och Big Bath Accounting vid VD-byte

Abstract

This study investigates whether governance quality, measured through G-scores, is associated with the probability of Big Bath Accounting during periods of CEO turnover. Using panel data on Nordic listed firms from 2015 to 2025, logistic regression was applied to examine whether G-scores reduce the probability of Big Bath Accounting, while controlling for variables such as firm size, profitability, leverage, year and industry effects. Findings show no statistically significant association between G-score, CEO turnover or their interaction and the probability of Big Bath Accounting. However firm size, ROA and leverage are significantly related to the occurrence of Big Bath Accounting. The results suggest that broad governance scores may not fully capture the specific mechanisms relevant for constraining opportunistic reporting decisions in CEO turnover contexts. This may also reflect limitations related to the identification of CEO turnover events, the operational definition of Big Bath Accounting applied and the relatively low explanatory power of the model’s control variables.