This research is the result of the author’s quest to answer the question whether Corporate Governance is effective in Emerging Markets. Literature on Corporate Governance in the emerging markets of Latin America is limited mostly due to the relatively slower development of capital markets and the late adoption of corporate governance principles. Corporate Governance laws, which largely follow Sarbanes Oxley guidelines, were published and implemented in the mid 00´s and no research has checked their impact on corporate value in Latin America. This research reports compromises two empirical projects. The first project focused on the relationship between boards of directors attributes such size and composition, Corporate Governance law and firm value for Colombia. The second project focused on another Corporate Governance variable, CEO Duality and tested whether it has had any impact in Mexico. This second project also studied whether board attributes such as size and composition and Corporate Governance law were related to firm value. Based on the listed companies from Colombia and Mexico for the years 2001 to 2012 the author found no relationship between board size or composition and firm value. Results from Mexico, where CEO duality is allowed showed that it has no relationship with firm value. These results do not support or contradict either Agency theory or stewardship theory. Results on the impact of the adoption of a Corporate Governance law in firm value are mixed. Results for Colombia contradict previous literature by reporting a positive relationship between Corporate Governance laws and firm results while results from Mexico support previous research by reporting no relationship between these variables. This research is valuable for regulators and policy makers in their quest to assess the impact of the adoption of Corporate Governance laws in emerging markets. . Since effective Corporate Governance is important in easier access to financing it is important for shareholders to know which Corporate Governance mechanisms are positively related to firm value. Similarly, it is also important for investors (both foreign and local) in assessing the risk for equity investments in Colombia and Mexico.

There is an ethical dilemma and a legal issue of earnings management and insider trading, and a risk of it affecting the accuracy of financial markets. The use of earnings management leads to an information asymmetry between the corporate management and the financial markets. This paper investigates how earnings management affects insider trading and whether insider trading is a good information source about earnings quality and future performance. Studying companies believed to have conducted earnings management on Nasdaq OMX Nordic Stock Exchange (Stockholm) from 2005 through 2014 indicates that: (1) insiders do not sell shares after managing earnings upwards; (2) the relationship between insider selling and future earnings performance is positive, contradicting agency theory and previous research; (3) the market’s reaction to the earnings announcement one year after suspected earnings management is positive for firms where insiders have sold shares, and vice versa. Taken together, our results are not in line with those of previous studies conducted on other markets. This is likely to depend on the unique Swedish setting with the existence of endowment insurances, where insiders can trade shares without having to disclose their transactions to the market. Because of this, we argue that insider trading is not an adequate signal about Swedish firms’ earnings quality and future performance. We therefor further emphasize the importance of a change in the Swedish legislation, in order to insure the accuracy of financial markets and to protect other investors.

This thesis examines how the implementation process of Expected Credit Loss Model in the accounting standard IFRS 9 – Financial instruments is perceived and interpreted and how these factors can affect comparability in accounting. One of the main changes with IFRS 9 is that companies need to account for expected credit losses rather than just incurred ones. The data is primarily collected through a web survey where all of Nordic banks and credit institutes with a minimum book value of total assets of euro 1 billion, are invited to participate. The presentation of the collected data from the web survey is reported relative frequencies in tables. The analysis is carried out with the assistance of the theoretical framework consisting of Positive Accounting Theory and Agency Theory. The conclusion of the thesis is that how the level of information in the implementation process is interpreted and perceived can affect comparability in accounting negatively due to the room for subjective interpretations.

Introduktion Det finns ett flertal studier som undersöker variabler som påverkar revisionskostnaden i publika och privata bolag samt kommunen som förvaltningsorganisation. Vi har dock inte hittat några studier som undersöker variabler som påverkar revisionskostnaden i kommunala bolag, varför det finns ett behov av en sådan studie. Syfte Syftet med uppsatsen är att förklara vilka faktorer som påverkar revisionskostnaderna i kommunala och privata bolag. Metod Som en följd av att uppsatsen utgår från en deduktiv ansats, har hypoteser utvecklats med hjälp av befintliga teorier samt tidigare gjord forskning. En tvärsnittsstudie har genomförts för att spegla förhållandet vid en viss tidpunkt. Kvantitativ data har samlats in i form av sekundärdata. Detta har kompletterats med kvalitativ data som har samlats in via intervjuer. Slutsats Studiens resultat visar att det finns ett antal bakomliggande faktorer som förklarar revisionskostnaden. Sektorstillhörighet, storlek, komplexitet, val av revisionsbyrå och knowledge spillover har i studien ett signifikant samband med revisionskostnaden. / Introduction There are several studies that examine variables that affect the audit fee in listed companies, private companies and municipalities. We have not found any studies examining the variables that affect the audit fee in municipal companies, justifying the need for such a study. Purpose The purpose of the study is to explain audit fees in municipal and private companies Method As a result of the study being based on a deductive approach, hypotheses have been derived using existing theories and previous research. A cross-sectional study has been performed to reflect the ratio at a given time. Quantitative data has been collected as secondary data. This has been complemented with qualitative data collected through interviews. Conclusion A relationship has been established between audit fees and a number of explanatory variables. Sector, size of the company, complexity, choice of audit firm and knowledge spillover affects the audit fee.

This dissertation examines the forces that drive organizational structure and boundary decisions. Using theoretical concepts drawn from transaction cost theory and agency theory, this dissertation develops a model that draws attention to behavioral and outcome distinctions in information flow. Specifically it examines how characteristics of these different types of management information alter the organizational design outcomes predicted by the two theory bases above. The foundational arguments regarding firm boundaries and structure are based on the two contracting modes of agency theory, behavioral and outcome. The construct of information localization (IL), defined as theneed to use information within its immediate context (or conversely, the difficulty of transferring and utilizing information outside of its immediate context), is introduced and used to predict organizational design decisions. This construct represents a synthesis of prior conceptions of information characteristics and is used both to capture salient characteristics of management information and to facilitate an examination of the impacts of different information technology (IT) applications. The relationship between information localization and firm boundaries and structure is tested at the task level. The relationship of information technology with boundary and structure decisions is explained using the model and tested concurrently with the test of the information localization hypotheses. A comprehensive model is proposed and propositions to guide future research are developed. The distinction between outcome and behavioral information localization allows a more nuanced assessment of the impacts of information and information technology on the organization of work. The empirical results suggest that the impact of IT on outcome information localization is negligible for tasks with low outcome IL but increases the likelihood of outsourcing for tasks with high outcome IL. Contrary to prior findings utilizing different conceptualizations of information flow, the impact of technology on behavioral IL on autonomy showed that applications of IT may increase autonomy (decentralization of decision-making) rather than decrease it. / text

Business organizations rely on exploitation and efficiency to provide short-term results and on exploration and innovation for their future viability. The ability to simultaneously exploit and explore has been termed organizational ambidexterity. Front-line managers who are able to encourage both exploitation and exploration from their employees should therefore be quite successful, but this is not an easy task. Managerial interventions seek to align the employees’ interests with the manager’s interests and therefore can be perceived as more controlling than enabling, thereby negatively impacting ambidexterity. This case study uses agency theory as a theoretical lens to understand managerial interventions that could focus attention on individual employees’ actions that are both exploitative and explorative in an enabling fashion to allow for success. The study advances managerial practice, addresses gaps in the literature on ambidexterity, and advocates development of a new management theory by recommending that managers focus their interactions into three sets of tasks, 1) those that connect the employee to the organization, 2) those that connect the manager to the employee, and 3) those that enable the employee to go forward and own their decisions, within these connections. We argue, this combination of interventions work together to encourage an environment of both exploitation and exploration, or contextual ambidexterity, with the opportunity to be successful in both the short-term and into the future.

Saskatchewan has good growing conditions, much land and water resources, minimal pest pressure and the expertise necessary for growing high-quality commercial vegetables. Statistics show, however, that commercial vegetable production occupies a relatively small place in the agricultural economy of Saskatchewan. Saskatchewan production accounts for less than 10 per cent of the total provincial market for fresh vegetables, the other supplies of fresh vegetables marketed in Saskatchewan come from sources outside of the province and imports from the southern United States, Mexico, and other warm regions. The majority of Saskatchewan produced vegetables are sold through market gardens, farmers’ markets and consumer contract sales. In light of the increasing importance of fresh vegetable demand, examining the role of a new marketing organization in the province is important as it might bring about major realignment of the Saskatchewan fresh produce market. Recently, a project supported by the Agriculture Council of Saskatchewan Inc. (ACS) encouraged producers to organize themselves into picking zones and to work together to supply larger retail markets. The Grocery People (TGP) (a retailer) has agreed to purchase vegetables grown in Saskatchewan for their distribution centre in Saskatoon. This new organization, Prairie Fresh Food Corporation (PFFC), despite its numerous benefits, will test the farmer participants’ resolve to cooperate rather than proceed alone. This poses a real opportunity for producers to expand and develop the infrastructure required, as produce can be pooled. This study uses Transaction Cost, Agency and Monopolistic Competition theories to analyze the factors that hamper farmers from participating in contracts and taking advantage of these potential opportunities. It considers the advantages and barriers or potential challenges to wholesalers and retailers cooperating with this plan. In particular, an economic model of economies of scale through collective action is developed. The model assumes that small growers can access higher market share through collective action and achieving economies of scale. The results of personal interviews with eleven members of PFFC are presented and analyzed in a case study format. The case study analysis of PFFC reveals that the organization could provide positive benefits to its members in the early period of its establishment. The results show that the market share of the PFFC is still relatively small throughout the province, but its members expect it to expand in the future. The results suggest that high relative prices in the market and trust in the buyer have a positive effect on the probability of farmer participation in the project.

The food processing industry is dominated by large corporations. These firms play a critical role in forming the derived demand faced by agricultural producers, but little is understood about how these companies make strategic choices. Organizational economics provides a framework for exploring the firm's decision process. However, several theories exist in this discipline, operating in fundamentally different ways. This paper examines the two prevalent organizational theories, Transaction Cost Economics and Agency Theory, through a study of the food processing industry. This sector is thoroughly analyzed in order to make predictions from each theory regarding the aspects of capital structure and firm expansion. With accounting data for a sample of food processing firms, these predictions are then tested empirically using an ICAPM model in a cross-section of expected stock returns. Our results indicate that Agency Theory is the relevant organizational model for food manufacturers, making it the appropriate tool for evaluating the actions of these firms in agricultural markets.

Cloud computing is becoming a viable option for Chief Information Officers (CIO’s) and business stakeholders to consider in today’s information technology (IT) environment, characterized by shrinking budgets and dynamic changes in the technology landscape. The objective of this study is to help Federal Government decision makers appropriately decide on the suitability of applications for migration to cloud computing. I draw from four theoretical perspectives: transaction cost theory, resource-based theory, agency theory and dynamic capabilities theory and use a conjoint analysis approach to understand stakeholder attitudes, opinions and behaviors in their decision to migrate applications to cloud computing. Based on a survey of 81 government cloud computing stakeholders, this research examined the relative importance of thirteen factors that organizations consider when migrating applications to cloud computing. Our results suggest that trust in the cloud computing vendor is the most significant factor, followed by the relative cost advantage, sensing capabilities and application complexity. A total of twelve follow-up interviews were conducted to provide explanation of our results. The contributions of the dissertation are twofold: 1) it provides novel insights into the relative importance of factors that influence government organizations’ decision to migrate applications to cloud computing, and 2) it assists senior government decision makers to appropriately weigh and prioritize the factors that are critical in application migration to cloud computing.

Kovenanter ett amerikanskt fenomen som successivt har spridit sig över världen. I Sverige börjades olika typ av kovenanter användas under 1960-talet som kreditvillkor vid företagsfinansiering. Men även om kovenanter blivit ett vanligt verktyg inom den svenska kreditverksamheten sedan 1960-talet, finns det fortfarande bristande kunskaper om dess praktiska användande.  Denna studies syfte är att utforska hur bankers användning av kovenanter i låneavtal påverkas av företagsspecifika, relationsspecifika, lånespecifika och andra faktorer. Studien är inriktad till att studera svenska bankernas användning av kovenanter vid företagskreditgivning och kommer därför inte att behandla privat och offentlig sektor.   Studiens ansats är abduktiv, som möjliggör en växling mellan teori och empiri. För att öka förståelsen kring kovenanters användning har semistrukturerade intervjuer genomförts. Urvalet är begränsat till sex stycken av Sveriges största banker. Insamlad empiri har därefter tolkats utifrån agency theory of covenants, som härstammar från agent och principal teori. Därefter avslutas studien med en presentation av slutsatser, samhällsmässigt kunskapsbidrag, etiska bidrag, egna reflektioner och begränsningar samt förslag på vidare forskning.   Studiens resultat påvisar att kovenanter har en viktig funktion som kontroll och riskhanterings mekanism i låneavtal, men det ersätter inte behovet av realsäkerheter. Dessutom tyder resultatet på att användningen av kovenanter främst påverkas av låntagarens storlek, förmåga att lämna säkerheter, lånelöptid och storlek, samt lånets användningsändamål. / Covenants are an Americans phenomenon that has been successfully spread around the world. Different types of covenants are regularly used in Sweden and has been used in corporate loan contracts since 1960. Despite that covenants has been a commonly used tool in the Swedish loan contracts since the 1960s there is still a lack of knowledge about covenants practical use. The purpose of this study is to research the use of covenants in loan agreements from banks point of view, and explain how different factors such as borrower characteristic, loans characteristic, bank-borrower relationships and other factors can affect banks’ practice of using of covenants. The research question in this study is how different factors such as borrower characteristic, loans characteristic, bank-borrower relationships and other factors can affect Swedish banks’ practice in using of covenants. The study is aimed to research the Swedish banks' use of covenants in corporate debt, therefore the private and public sectors financiering are not considered. The survey has an abductive approach that provides ability to move back and forth from theory to empirical data. In order to explore the phenomena of covenants closely the semi-structured interviews are used for collecting data. Participants from the six largest banks in Sweden were selected to participate in the research. Collected data has been interpreted based on agency theory of covenants, which originates from the agent-principal theory. Finally the conclusion of the study is presented as well as socially knowledge contribution and suggestions for the further research. The results collected from the survey shows that the covenants have an important function as control and risk management mechanism in the loan agreement, but it does not replace the need for real security. The survey also shows that the use of covenants is mainly affected by the borrower's size, ability to provide collateral, loan duration and size, and the loan's purpose.