EconPapers    
Economics at your fingertips  
 

Institutional Ownership Composition and Earnings Management

Ling Lin () and Pavinee Manowan ()
Additional contact information
Ling Lin: University of Massachusetts Dartmouth, 285 Old Westport Road, North Dartmouth, MA 02747-2300, USA
Pavinee Manowan: Chulalongkorn University, 254 Phayathai Road, Pathumwan, Bangkok 10330, Thailand

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2012, vol. 15, issue 04, 1-22

Abstract: This paper examines the impact of outside block-holders on earnings management, using discretionary accounting accruals as the measure of earnings management. For the income-decreasing earnings management scenario, we do not find significant results. This may be attributable to the different natures and time horizons of outside block-holders. Since the majority of outside block-holders are institutional investors, we then investigate the relationship between ownership by institutional investors with different natures and earnings management. Specifically, we find a significant positive relationship between ownership by transient institutional investors (holding diversified portfolios with high turnover) and discretionary accounting accruals. However, we do not find a significant relationship between ownership by dedicated institutional investors (holding concentrated portfolios with low turnover) and discretionary accounting accruals. Therefore, due to the differing natures of institutional investors, we may not treat them as a homogeneous group.

Keywords: Institutional ownership; transient institutional investors; dedicated institutional investors; earnings management (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2012
References: View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219091512500221
Access to full text is restricted to subscribers

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:wsi:rpbfmp:v:15:y:2012:i:04:n:s0219091512500221

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219091512500221

Access Statistics for this article

Review of Pacific Basin Financial Markets and Policies (RPBFMP) is currently edited by Cheng-few Lee

More articles in Review of Pacific Basin Financial Markets and Policies (RPBFMP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2025-03-20
Handle: RePEc:wsi:rpbfmp:v:15:y:2012:i:04:n:s0219091512500221