The doctoral dissertation in the field of Accounting and Finance will be examined at the Faculty of Social Sciences and Business Studies at Kuopio Campus and online.
What is the topic of your doctoral research? Why is it important to study the topic?
This dissertation examines corporate governance and auditing in Finnish privately owned SMEs. SMEs dominate the Finnish economy, with around 480,000 firms employing 1.45 million people; over 96% are micro-enterprises, and SMEs generate more than half of total business turnover and about 40% of GDP. In this context, understanding governance is crucial because it directly shapes tax behaviour, financing choices, and relationships with auditors. This research shows that governance in private SMEs is not only diverse but can also enable tax aggressiveness and influence resilience. The findings provide practical insights for policymakers, auditors, and SME owners seeking to improve financial stability, transparency, and growth in an uncertain economic environment.
What are the key findings or observations of your doctoral research?
This dissertation shows that governance in private SMEs directly affects real financial decisions. Moderate CEO ownership encourages responsible tax behaviour, while very high ownership can lead to more aggressive tax planning. CEO duality often results in more cautious decisions but can also reduce oversight. Auditor choice is influenced not only by cost and expertise but also by cultural and social factors. Additionally, firms audited by Big Four auditors tend to adopt more conservative, low-debt strategies, improving resilience, though this depends on internal governance such as ownership and leadership structure. The research shifts attention from large listed firms to private SMEs, where governance works differently and is less regulated. It shows that governance mechanisms do not always constrain opportunism; instead, they can also enable strategic behaviour such as tax planning. For practitioners, the findings highlight how ownership design, leadership roles, and auditor choice can be used as practical tools to manage risk, improve financial stability, and adapt to challenging economic conditions.
How can the results of your doctoral research be utilised in practice?
The findings can be used by SME owners, managers, auditors, and policymakers to improve financial decision-making and resilience. For SME practitioners, the results highlight how ownership structure and leadership roles can be designed to better control tax and risk-taking behaviour. Understanding these effects helps firms avoid overly aggressive strategies and improve long-term sustainability. For auditors, the research shows how audit quality and client–auditor matching influence firm behaviour, supporting more effective and trust-based audit relationships. For policymakers, the results provide evidence that governance in private firms differs from that in listed companies, suggesting the need for tailored regulations and guidance. Overall, the study offers practical insights to strengthen transparency, financial stability, and governance practices in the SME sector.
What are the key research methods and materials used in your doctoral research?
The dissertation is based on quantitative empirical research using a large dataset of Finnish private SMEs, combining financial statements, ownership records, and audit information. It links firm-level data with governance characteristics such as ownership concentration, CEO roles, and board composition. The analysis applies econometric methods, particularly robust regression models using STATA software, to ensure reliable results even in the presence of outliers and firm heterogeneity. Interaction effects are also examined to understand how governance and audit quality jointly influence outcomes such as tax aggressiveness and capital structure. The research is structured as three essays focusing on tax behaviour, auditor choice, and financing decisions, providing data-driven insights into how governance and auditing shape financial behaviour in private SMEs.
The doctoral dissertation of Vijay Lakshmi Burman, M.Sc., entitled Essays on Corporate Governance and Auditing in Finnish Private SMEs will be examined at the Faculty of Social Sciences and Business Studies. The opponent will be Associate Professor Suman Lodh, Kingston University, and the custos will be Professor Mervi Niskanen, University of Eastern Finland. Language of the public defence is English.
For further information, please contact:
Doctoral Researcher Vijay Lakshmi Burman, [email protected], +358 50 479 0151