An Empirical Examination of Ownership Structure, Earnings Management and Growth Opportunities in Mexican Market

Juan Manuel San Martín Reyna
Additional contact information
Juan Manuel San Martín Reyna: Professor-Researcher,Department of Business and Administration,Universidad de las Américas Puebla,San Andrés Cholula, Puebla, México

International Journal of Business and Social Research, 2012, vol. 2, issue 7, 103-123

Abstract: This paper analyses the influence of ownership structure, board and leverage on the earnings management when companies either face, or do not face, profitable growth opportunities for a sample of 90 listed Mexican firms during the period 2005-2009. The results confirm the relevance of debt and board of directors in terms of earnings management by showing a positive relationship between earnings management and both board of directors and leverage in the presence of growth opportunities. In contrast, this relationship becomes negative when firms have no profitable investment projects. The results also demonstrate the relevance of controlling shareholders on earnings management under a growth opportunity setting.Therefore, our results show that ownership structure, composition and size of board and leverage play a dual role: reduce the earnings management when there are no investments projects, but impact positively in presence of growth opportunities.

Keywords: Earnings Management; Ownership Structure; Leverage; Board; Growth Opportunities. (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://thejournalofbusiness.org/index.php/site/article/view/123/122 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mir:mirbus:v:2:y:2012:i:7:p:103-123

Access Statistics for this article

More articles in International Journal of Business and Social Research from MIR Center for Socio-Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by M Kabir ().