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Author: Cheong H. Yi Publisher: ISBN: Category : Languages : en Pages : 56
Book Description
Using a large sample of both publicly traded and privately held firms in Korea, this paper investigates whether, and how, the deviation of controlling shareholders' control from ownership, business group affiliation, and listing status differentially affect the extent of earnings management. Our results show the following: First, as the control-ownership disparity becomes larger, controlling shareholders tend to engage more in opportunistic earnings management to hide adverse consequences of their self-serving behavior. The result of our full-model regression reveals that an increase in the control-ownership wedge by 1% leads to an increase in the magnitude of (unsigned) discretionary accruals by 1.3% of lagged total assets, ceteris paribus. Second, we find that for our full model regression, the magnitude of (unsigned) discretionary accruals is greater for group-affiliated firms than non-affiliated firms by 0.8% of lagged total assets. This result suggests that business group affiliation provides controlling shareholders with more incentives and opportunities for earnings management. Finally, we find that for our full-model regression, the magnitude of (unsigned) discretionary accruals is greater for publicly traded firms than for privately held firms by 1.2% of lagged total assets. This result supports the notion that stock markets create incentives for public firms to manage reported earnings to satisfy the expectations of various market participants that are often expressed in earnings numbers.
Author: Cheong H. Yi Publisher: ISBN: Category : Languages : en Pages : 56
Book Description
Using a large sample of both publicly traded and privately held firms in Korea, this paper investigates whether, and how, the deviation of controlling shareholders' control from ownership, business group affiliation, and listing status differentially affect the extent of earnings management. Our results show the following: First, as the control-ownership disparity becomes larger, controlling shareholders tend to engage more in opportunistic earnings management to hide adverse consequences of their self-serving behavior. The result of our full-model regression reveals that an increase in the control-ownership wedge by 1% leads to an increase in the magnitude of (unsigned) discretionary accruals by 1.3% of lagged total assets, ceteris paribus. Second, we find that for our full model regression, the magnitude of (unsigned) discretionary accruals is greater for group-affiliated firms than non-affiliated firms by 0.8% of lagged total assets. This result suggests that business group affiliation provides controlling shareholders with more incentives and opportunities for earnings management. Finally, we find that for our full-model regression, the magnitude of (unsigned) discretionary accruals is greater for publicly traded firms than for privately held firms by 1.2% of lagged total assets. This result supports the notion that stock markets create incentives for public firms to manage reported earnings to satisfy the expectations of various market participants that are often expressed in earnings numbers.
Author: Jeong-Bon Kim Publisher: ISBN: Category : Languages : en Pages :
Book Description
Using a large sample of both publicly traded and privately held firms in Korea, this paper investigates whether, and how, the deviation of controlling shareholders' control from ownership, business group affiliation, and listing status differentially affect the extent of earnings management. Our results show the following: First, as the control-ownership disparity becomes larger, controlling shareholders tend to engage more in opportunistic earnings management to hide adverse consequences of their self-serving behavior. The result of our full-model regression reveals that an increase in the control-ownership wedge by 1% leads to an increase in the magnitude of (unsigned) discretionary accruals by 1.3% of lagged total assets, ceteris paribus. Second, we find that for our full model regression, the magnitude of (unsigned) discretionary accruals is greater for group-affiliated firms than non-affiliated firms by 0.8% of lagged total assets. This result suggests that business group affiliation provides controlling shareholders with more incentives and opportunities for earnings management. Finally, we find that for our full-model regression, the magnitude of (unsigned) discretionary accruals is greater for publicly traded firms than for privately held firms by 1.2% of lagged total assets. This result supports the notion that stock markets create incentives for public firms to manage reported earnings to satisfy the expectations of various market participants that are often expressed in earnings numbers.
Author: Amrinder Khosa Publisher: Cambridge University Press ISBN: 1108624863 Category : Business & Economics Languages : en Pages :
Book Description
Concentrated ownership is considered to be the best protection for shareholders in economies where legal protection is relatively weak. This book investigates and concludes, for Indian business groups, that concentrated-inside ownership provides opportunities for the expropriation of minority shareholders. While more concentrated direct ownership of controlling families results in a higher market value of equity, indirect ownership obtained through cross-holding provides incentives to extract private benefits and results in value loss. This finding requires the prompt attention of regulatory bodies, outside investors and other interested parties. This book examines the effect of ownership structure and disclosure of related-party transactions on firm valuation of group-affiliated firms in India, by using a sample of 317 listed firms comprising 1350 firm-year observations from 2008 to 2017. Well-accepted value-relevance models are employed to examine the effect of ownership rights on market value of equity and valuation effect of RP trading, asset transfer, investment and loan transactions.
Author: Malek El Diri Publisher: Springer ISBN: 3319626868 Category : Business & Economics Languages : en Pages : 120
Book Description
This book provides researchers and scholars with a comprehensive and up-to-date analysis of earnings management theory and literature. While it raises new questions for future research, the book can be also helpful to other parties who rely on financial reporting in making decisions like regulators, policy makers, shareholders, investors, and gatekeepers e.g., auditors and analysts. The book summarizes the existing literature and provides insight into new areas of research such as the differences between earnings management, fraud, earnings quality, impression management, and expectation management; the trade-off between earnings management activities; the special measures of earnings management; and the classification of earnings management motives based on a comprehensive theoretical framework.
Author: Hadrian Geri Djajadikerta Publisher: Springer ISBN: 9812874992 Category : Business & Economics Languages : en Pages : 351
Book Description
This book offers a collection of studies on regional integration and the dynamic business environment in East Asia. The papers included, originally presented at the 2014 Asia Pacific Business Conference on "Free Trade Agreements and Regional Integration in East Asia," examine the challenges and dynamics in the increasingly integrated East Asian markets and outline a new paradigm for doing international business in the region. The papers address diverse areas related to regional integration, financial markets, investment, trade and capital flow, sustainability, accounting and auditing issues, exchange rates, strategies and the regional business environment. The book provides a valuable resource for practitioners, policy-makers and students who are interested in understanding the vibrant aspects of business in today’s East Asia.
Author: Marita Rautiainen Publisher: Springer ISBN: 3319985426 Category : Business & Economics Languages : en Pages : 410
Book Description
This edited collection analyses the unexplored concept of the family business group, evaluating the opportunities and advantages that it creates for entrepreneurs. Raising a number of important questions, the authors construct a new research agenda for the complex topic of the family business group, which will ultimately assess its contribution towards the economy and society in general. The chapters provide a core understanding of the phenomenon and cover its formation, nature and complexities, as well as offering a holistic perspective and exploring factors such as scale, size and regional contexts. A useful tool for those researching small businesses, organisation, and business strategy, this book highlights the key advantages of family business group structures in both developed and developing countries, and local and national contexts.
Author: Bruno Maria Franceschetti Publisher: Springer ISBN: 3319541218 Category : Business & Economics Languages : en Pages : 168
Book Description
This book approaches the question of the relation between financial crises and earnings management from two philosophical perspectives: positivism and critical realism. The results obtained using the positivist approach indicate that financial crises tend to have no consistent effect on earnings quality since managers’ earnings behavior does not differ from the pre-crisis to the crisis period. The author accordingly argues against the existence of a causal law based on a constant conjunction model (i.e., whenever a financial crisis happens, earnings management occurs) and concludes that financial crises cannot be seen as the cause of earnings management. The critical realism perspective, on the other hand, casts light on managers’ reasons for acting like an earnings manager; in conjunction with the more traditional positivist approach, it assists in refuting the idea of financial crises as a generative mechanism for earnings management. The author concludes by exploring other structures at work that might be responsible for earnings management. This book will be of interest to both academics and a wide range of professionals.
Author: Shveta Singh Publisher: Springer Nature ISBN: 9811924600 Category : Business & Economics Languages : en Pages : 204
Book Description
This book begins by analysing the various corporate governance mechanisms explored in the extant literature and determining their effectiveness in enhancing the firm value using multivariate analysis. The findings are of global relevance as the corporate governance regulations of most countries focus on independent directors as the mainstay of good governance. The empirical evidence from the first objective of this study corroborates the claim that independent directors do not strengthen the firms’ governance quality. The book is one of the few works to have analysed the possible reasons behind the ineffectiveness of the independent directors. Also, in view of the famous concept of the bundle of governance mechanisms, it might be possible that the independent directors strengthen the firms’ governance quality indirectly by strengthening other governance mechanisms. This aspect too has little precedence. This study adopts a novel moderation and mediation approach to analyse the monitoring behaviour of independent directors in relation to other governance mechanisms. The work is a must read for corporate players as well as researchers and scholars studying this discipline.
Author: Alqatan, Ahmad Publisher: IGI Global ISBN: 1799848531 Category : Business & Economics Languages : en Pages : 425
Book Description
After the global financial crisis, the topic of corporate governance has been gaining momentum in accounting and finance literature since it may influence firm and bank management in many countries. Corporate Governance and Its Implications on Accounting and Finance provides emerging research exploring the implications of a good corporate governance system after global financial crises. Corporate governance mechanisms may include board and audit committee characteristics, ownership structure, and internal and external auditing. This book is devoted to all topics dealing with corporate governance including corporate governance characteristics, board diversity, CSR, big data governance, bitcoin governance, IT governance, and governance disclosure, and is ideally designed for executives, BODs, financial analysts, government officials, researchers, policymakers, academicians, and students.
Author: Cheong H. Yi
Author: Cheong H. Yi
Author: Jeong-Bon Kim
Author: Amrinder Khosa
Author: Malek El Diri
Author: Soodong Kim
Author: Hadrian Geri Djajadikerta
Author: Marita Rautiainen
Author: Bruno Maria Franceschetti
Author: Shveta Singh
Author: Alqatan, Ahmad