The governance impact of a changing investor landscape

Ruth V. Aguilera (), Kurt Desender, Mónica López-Puertas Lamy and Jun Ho Lee
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Ruth V. Aguilera: Northeastern University
Mónica López-Puertas Lamy: Universidad Carlos III
Jun Ho Lee: Neely Business School, Texas Christian Universtiy

Journal of International Business Studies, 2017, vol. 48, issue 2, No 4, 195-221

Abstract: Abstract Within the backdrop of comparative corporate governance research, we draw on the managerial reporting and impression management literatures to examine how the type, level, and nature of foreign shareholders, infused with their own governance logic, influence initial managerial earnings optimism and how foreign ownership shapes earnings guidance in a stakeholder-oriented setting. Drawing on Japanese data, and addressing endogeneity concerns, our results show that under the presence of foreign owners, managers are more optimistic in their initial earnings forecasts, but that in subsequent revisions they are more likely to provide timely adjustments of their earnings forecast and avoid making last-minute adjustments. This research illustrates how foreign practices travel across borders and contributes to understanding triggers to governance and strategic changes.

Keywords: comparative corporate governance; foreign ownership; management reporting; comparative accounting systems and practices; institutionalism (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (28)

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DOI: 10.1057/s41267-016-0043-y

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