Author: Uma VeluryPublisher:
ISBN:
Category :
Languages : en
Pages : 134
Book Description
The Effect of Institutional Ownership on the Quality of Earnings
Author: Uma VeluryInfluence of Institutional Ownership on Earnings Quality
Author: Abdul Wahab LatifPublisher:
ISBN:
Category :
Languages : en
Pages : 20
Book Description
Prior studies have shown that ownership structure of firms affects their performance, decision making and earnings. Studies have found that institutional owners are well informed, organized and proactive as compared to other owners. In this study we empirically examined the impact of institutional ownership on earnings quality for the listed firms of the Pakistan Stock Exchange (PSX). The data of 200 non-financial listed firms from 2002 to 2014 is collected for this study. The conceptual framework of Financial Accounting Standards Board (FASB, 1980) is used to measure the earnings quality. The four dimensions of earnings quality studied are: predictive value, neutrality, timeliness and representational faithfulness. Results showed institutional ownership is positively related with earnings quality. Moreover, a greater level of institutional shareholding brings more oversight and enhances earnings quality.
Institutional Investors, Long-term Investment, and Earnings Management
Author: Brian J. BusheePublisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 238
Book Description
This paper examines the influence of institutional investors on the incentives of corporate managers to alter long-term investment for earnings management purposes. Many critics argue that the short-term focus of institutional investors encourages managers to sacrifice long-term investment to meet current earnings targets. Others argue that the large stockholdings and sophistication of institutions allow them to fulfill a monitoring role in preventing such myopicinvestment behavior. I examine these competing views by testing whether institutional ownership affects R&D spending for firms that could reverse a decline in earnings with a reduction in R&D. The results indicate that managers are less likely to cut R&D to reverse an earnings decline when institutional ownership is high, implying that institutions typically serve a monitoring role relative to individual investors. However, I find that a high proportion of ownership by institutions exhibiting "transient" ownership behavior (i.e., high portfolio turnover and momentum trading) significantly increases the probability that managers reduce R&D to boost earnings. These results indicate that high turnover and momentum trading by institutional investors can encourage myopic investment behavior when such institutional investors have extremely high levels of ownership in a firm; otherwise, institutional ownership serves to reduce pressures on managers for myopic investment behavior.
Payout Policy
Author: Publisher:
ISBN: 9781846632563
Category : Corporations
Languages : en
Pages : 83
Book Description
Dividend policy continues to be among the premier unsolved puzzles in finance. A number of theories have been advanced to explain dividend policy. This e-book briefly reviews the principal theories of payout policy and dividend policy and summarizes the empirical evidence on these theories. Empirical evidence is equivocal and the search for new explanation for dividends continues.
Comparative Research on Earnings Management, Corporate Governance, and Economic Value
Author: Vieira, Elisabete S.Publisher: IGI Global
ISBN: 1799875989
Category : Business & Economics
Languages : en
Pages : 433
Book Description
New trends are emerging regarding earnings management and corporate governance showing similarities and striking differences in the practices of different countries and economies. These new trends currently shape the field of modern corporate governance with crucial issues being looked at in governance law and practices, accounting systems, earnings quality and management, stakeholder involvement, and more. In order to advance these new avenues in corporate governance, research looks at accounting policies firms use in different opportunistic circumstances in order to manage earnings, the corporate governance practices in different countries, firm performance, and other dimensions of companies. The understanding of these topics is beneficial in understanding the current state of different types of firms and their practices in modern times. Comparative Research on Earnings Management, Corporate Governance, and Economic Value is focused on the investigation of key challenges and perspectives of corporate governance and earnings management and outlines possible scenarios of its development. The chapters explore this new avenue of research and cover theoretical, empirical, and experimental studies related to different themes in the global context of earnings management and corporate governance. This book is ideal for economists, businesses, managers, accountants, practitioners, stakeholders, researchers, academicians, and students who are interested in the current issues and advancements in corporate governance and earnings management.
Institutional Ownership, Tender Offers, and Long-term Investments
Author: Portfolio Preferences of Foreign Institutional Investors
Author: Reena AggarwalPublisher: World Bank Publications
ISBN:
Category : Foreign exchange
Languages : en
Pages : 47
Book Description
Ownership Characteristics and Earnings Quality
Author: Rotcharin KunsrisonThe Relations Between Institutional Equity Ownership, Price Responsiveness, and Accounting Disclosure Quality
Author: Renee Hall PriceDo Passive Investors Demand High Earnings Quality? Evidence from Natural Experiment
Author: Bill FrancisPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
In this paper, we examine the effect of passive institutional investors on firms' earnings quality by exploiting the variation in passive ownership around Russell 1000/2000 index cutoff. To get a comprehensive understanding, we use four sets of earnings quality proxies- properties of earnings, investor responsiveness to earnings, external indicators of earnings misstatements, and real earnings management. We find that passive investors improve earnings quality using all four above-mentioned sets of earnings quality proxies. We find this effect to be more pronounced in firms with low active institutional holdings. Furthermore, we find firms with higher passive institutional ownership undertake relatively more long-term investments.