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The study of the relationship between characteristics of institutional investors and earning management
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Hossein Kazemi   , Shayesteh Farsi |
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Abstract: (3090 Views) |
The purpose of this paper is to examine the differential effects of institutional non-blockholders (NONB) and active institutional blockholders (ACTB) on earnings management behavior, as measured by discretionary accruals. In examining the relationship, the different levels of earnings pressure (EP) is considered. Analysis of the data was performed using the combined data regression model. Our results of 127 firms during 2003 trough 2010 showed that between the independent variables (Institutional non-block holders & Institutional block holders) and the dependent variable (discretionary accruals), in significant relationship. While, significant coefficients are obtained by considering different levels of pressure. Interpretation of these results is expressed in the form; if there is pressure to increase profits; ACTB are encouraged managers to increase profits. While, these groups may play a preventive role when firms are under pressure to decrease earnings. The cause of these results due to the different effects that can be good and bad news on the public to make, Because potential owners are always seeking to invest in companies that have the highest rate of return. |
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| Keywords: Active institutional blockholders (ACTB), Institutional non-blockholder (NONB), Governance, discretionary accruals, earning pressure. |
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Full-Text [PDF 1809 kb]
(85 Downloads)
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Type of Study: Research |
Subject:
General
Received: 2012/09/15 | Accepted: 2012/12/18 | Published: 2020/12/21
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