Professor Janne Ruohonen combines expertise in business law and the evolving business landscape

A legal perspective is a natural approach to examining the operations of company boards. Business regulations imposed by the government have a significant impact on the competitiveness of companies. 

“When regulations are reformed, it is important to also consider the resulting administrative costs for companies, as Finland and the EU must maintain a sufficiently competitive operating environment for businesses,” says Professor Janne Ruohonen. 

Changes in business regulations often affect the operations and responsibilities of company directors. While Ruohonen’s research focuses on a legal perspective, he finds that a multidisciplinary approach is naturally suited for studying the operations of company boards.

“Boards require increasingly diverse expertise. Business decisions must be based on knowledge, and directors must exercise care and diligence. For some board members, their personal liability may still come as a surprise,” Ruohonen points out.

PhD Janne Ruohonen was appointed as a Professor of Business Law within the Faculty of Management and Business (MAB) at Tampere University in February 2025. In 2021, Ruohonen assumed an endowed associate professorship (tenure track) at Tampere University. This position was funded by the Finnish Municipal Foundation, Tampere Chamber of Commerce and Industry, the City of Tampere, Board Professionals Finland and Tampereen Messut Oy. 

Ruohonen earned his doctoral degree in 2012, with a dissertation exploring profit distribution and solvency tests in limited liability companies. Since then, Ruohonen has expanded his research interests to also include legal questions associated with company boards, municipal companies, auditing and corporate sustainability reporting. 

Photo: Jonne Renvall/Tampere University

“Globally, Finland stands out as the only country where auditors are required to review a company’s administration as part of the standard audit process. In practice, this means that the auditor must verify, for example, that the company’s board and CEO have complied with the law in their decision-making. This distinctive feature creates a strong connection between research on board operations and audit themes.” 

Research on MOCs focuses on corporate governance and the competence required from board members 

Research on municipally owned companies (MOCs) has a long-standing tradition at Tampere University. In Finland, there are approximately 2,100 MOCs operating in sectors such as energy, property maintenance and public services, with an average turnover of around €16 million. 

“MOCs make significant economic decisions that have a major impact on residents,” Professor Ruohonen says. 

In their latest research report published in 2024, Professors of Business Law Veikko Vahtera and Janne Ruohonen issued recommendations for the governance, evaluation and auditing within MOCs. Their research highlighted how the overall interests of local authority corporations can be promoted through different corporate governance methods, such as the appointment of board members. Their report also suggests ways to improve access to information for municipal audit committees.  

According to the Finnish Local Government Act, the composition of the board of directors of a municipal subsidiary must reflect the financial and business expertise required for the sector in which the entity operates. Professors Ruohonen and Vahtera are currently conducting a study on this theme.

“We examine how MOCs can ensure access to the required expertise by appointing individuals to board positions in line with the Local Government Act. Given that some MOC boards lack the necessary expertise, municipalities should invest more effort into developing their board appointment processes,” says Professor Janne Ruohonen.

Auditors prioritise essentials even in the AI age

A current research theme for Professor Ruohonen is the EU directive on corporate sustainability reporting. This evolving legislation requires large corporations to enhance their reporting on aspects such as the origin and manufacturing of their products and services. In Finland, only certified auditors who have completed a specialisation programme in corporate sustainability reporting can verify this data. 

Professor Ruohonen leads the Master’s Programme in Auditing and Evaluation at Tampere University. 

“The scope of auditors’ work has broadened to include the verification of sustainability reports, which differ significantly from the data examined during statutory audits. Artificial intelligence is certain to transform tasks that previously required manual examination. The materiality principle is a key guiding factor in auditors’ work,” says Ruohonen. 

Photo: Jonne Renvall/Tampere University

Societal impact through research

Researchers specialising in legal science actively engage with society by providing expert statements on government bills related to business regulations. 

“Research is the cornerstone of academia. Teaching is rooted in research, too. It is natural for universities to make a positive impact on society specifically through their research. Scientific publishing exerts an influence in many ways,” Ruohonen notes. 

Professor Ruohonen is an active member in various company boards and has served on the Law and Tax Committee of Tampere Chamber of Commerce and Industry for the past decade. Within the Faculty of Management and Business, he has been instrumental in organising company collaboration that allows business students to gain insights from professionals through guest lectures and case assignments.

“It is important for our students to understand the practical aspects of board operations and the roles of chairpersons. For students, I aim to be an approachable professor who blends theoretical knowledge with practical experience. These elements are not mutually exclusive but complement one another.”