The impact of accounting practices on financial sustainability: A study of external block-holders and institutional ownership

Yufei Cao (), Abdulmajeed Mawhan H. Alfadhli (), Mohammad Jaradat (), Ramona Lile (), Mihaela Gadoiu (), Mariana Banuta (), Daniela Mihai () and Malik Shahzad Shabbir ()
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Yufei Cao: Shandong Institute of Commerce and Technology
Abdulmajeed Mawhan H. Alfadhli: King Saud University
Mohammad Jaradat: University, Bogdan Voda
Ramona Lile: University of Aurel Vlaicu
Mihaela Gadoiu: National University of Science and Technology Politehnica Bucharest, Pitesti University Center
Mariana Banuta: National University of Science and Technology Politehnica Bucharest, Pitesti University Center
Daniela Mihai: National University of Science and Technology Politehnica Bucharest, Pitesti University Center
Malik Shahzad Shabbir: ILMA University

Review of Managerial Science, 2024, vol. 18, issue 7, No 7, 1945-1961

Abstract: Abstract This study intends to investigate the impact of the accounting number game on financial sustainability. It investigates the role of external block-holders and institutional ownership on the association between accounting number game and financial sustainability. This study uses a sample of listed companies in the Pakistan Stock Exchange (PSX). Logit analysis is used to see the influence of accounting numbers’ games on financial sustainability. Additionally, the moderating impact of external block-holders and institutional ownership on the association between accounting numbers’ game and financial sustainability is examined. This study documents the novel evidence that accounting numbers games worsen the financial sustainability of companies and it can be improved by limiting the earnings management practices of managers through “efficient-market hypothesis”.

Keywords: Accounting numbers game; Earnings management; Financial sustainability; Institutional ownership; G15; G17; M41 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11846-024-00761-1

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