Institutional ownership and earnings management: Evidence from India

Potharla, Srikanth; Bhattacharjee, Kaushik; Iyer, Vishwanathan

doi:10.1080/23322039.2021.1902032

Cited by 13 publications

(4 citation statements)

References 45 publications

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“…A study of firms listed on the CNX 500 index of the National Stock Exchange (NSE) of India shows that institutional investors restrict managers from using discretionary powers in managing earnings and that the presence of institutional investors is negatively associated with earnings management (Ajay & Madhumathi, 2015). Potharla, Bhattacharjee, and Iyer (2021) also suggest similar findings, that institutional ownership strengthens the effectiveness of monitoring and hence these investors have a negative impact on earnings management. The study by Ramalingegowda, Utke, and Yu (2021) on common institutional ownership also confirms that institutional investors are effective in reducing earnings management.…”

Section: Institutional Ownershipmentioning

confidence: 92%

Board influence on accruals management and the role of ownership structure: Evidence from Bangladesh

Hasan,

Rekabder,

Hasan

et al. 2023

5002

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The main purpose of this study is to explore the association between accruals management (AM) and board attributes. Additionally, the study investigates the moderating role of ownership structures. In order to perform the study, five years of data (2016–2020) for 159 firms listed on the Dhaka Stock Exchange (DSE) have been considered, consisting of 759 firm-year observations. Agency theory that governs the relationship between the principal and the agent has been applied here. We have used STATA software with the random effects GLS model to run the regression on the balanced panel data. The results of the analysis show that, while board size and board independence have significant positive relation with AM, gender diversity, institutional ownership and family ownership show a significant negative association with AM. The analysis of moderating variables shows that foreign ownership has a significant negative impact on the association between board expertise and AM, and family ownership has a significant negative impact on board independence and AM. These findings indicate that the type of ownership structure may be useful in attaining the objectives of the board in Bangladesh. The findings of the study will be relevant for the regulatory authorities in Bangladesh in controlling and implementing new guidelines related to corporate governance.

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Section: Institutional Ownershipmentioning

confidence: 92%

Board influence on accruals management and the role of ownership structure: Evidence from Bangladesh

Hasan,

Rekabder,

Hasan

et al. 2023

5002

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“…Konflik yang terjadi antara pemilik perusahaan dan manajer dapat diminimalisir dengan menjadikan manajersebagai seorang profesional yang diharapkanbertindak atas nama pemilik untuk mencapai tujuan perusahaan yaitu meningkatkan nilai perusahaan (Yusra et al, 2019), (Maswadeh, 2018). Proporsi kepemilikan institusional yang besar akan mendorong investor institusi untuk lebih melakukan pengawasan sehingga perilaku oportunistik manajer dapat dihentikan dan tingkat penyalahgunaan manajemen yang menurunkan nilai perusahaan dapat diminimalkan (Alhady & Risanty, 2023), (Wang & Wang, 2021), (Potharla et al, 2021).…”

Section: Pendahuluanunclassified

Pengaruh Kepemilikan Manajemen, Kepemilikan Institusional dan Ukuran Perusahaan Terhadap Nilai Perusahaan dengan Kebijakan Hutang sebagai Variabel Intervening

Purba,

Halim

2023

transformatif

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Tujuan dari penelitian ini adalah untuk mengetahui Kepemilikan Manajemen berpengaruh terhadap Nilai Perusahaan, untuk mengetahui Kepemilikan Institusional berpengaruh terhadap Nilai Perusahaan, untuk mengetahui Ukuran Perusahaan berpengaruh terhadap Nilai Perusahaan, untuk mengetahui Kepemilikan Manajemen berpengaruh terhadap Hutang Kebijakan, untuk mengetahui Kepemilikan Institusional berpengaruh terhadap Kebijakan Hutang, untuk mengetahui Ukuran Perusahaan berpengaruh terhadap Kebijakan Hutang, untuk mengetahui Kebijakan Hutang berpengaruh terhadap Nilai Perusahaan, untuk mengetahui Kepemilikan Manajemen berpengaruh terhadap Nilai Perusahaan melalui Kebijakan Hutang, untuk mengetahui Kepemilikan Institusional berpengaruh terhadap Nilai Perusahaan Perusahaan melalui Kebijakan Hutang, untuk mengetahui pengaruh ukuran perusahaan terhadap nilai perusahaan melalui kebijakan hutang. Jenis penelitian ini adalah penelitian deskriptif kuantitatif. Pengambilan sampel pada penelitian ini menggunakan teknik non-random sampling dengan purposive sampling. Hasil penelitian adalah variabel Kepemilikan Manajemen berpengaruh positif dan signifikan terhadap Nilai Perusahaan, variabel Kepemilikan Institusional menunjukkan terdapat pengaruh positif dan signifikan terhadap Nilai Perusahaan, variabel Ukuran Perusahaan menunjukkan pengaruh positif dan signifikan terhadap Nilai Perusahaan, variabel Kebijakan Hutang menunjukkan terdapat pengaruh positif dan signifikan terhadap Nilai Perusahaan

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“…Literature is replete with examples of how managerial ownership can prevent opportunistic behavior in organizations, but there is a dearth of systematic evidence demonstrating whether managerial ownership has a significant effect on REM, necessitating the present assessment (Debnath et al, 2021;Potharla et al, 2021;Pawar et al, 2021;Wang & Wang, 2021). The Financial Reporting Council (FRC) of Nigeria and the Nigerian Exchange Group (NGX) will use this study's findings to guide them in making decisions about institutional ownership.…”

Section: Introductionmentioning

confidence: 99%

Effect of Managerial Ownership and Audit Committee Financial Expertise on Earnings Management of Listed Manufacturing Companies in Nigeria

Irom¹,

Okpanachi²,

Ahmed³

et al. 2023

EJAAFR

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Earnings management research has a long and rich history. However, the effect of managerial ownership and audit committee financial expertise on earnings management is rarely conducted in the developing countries like Nigeria. Therefore, this study examines how managerial ownership and audit committee financial expertise on earnings management of listed manufacturing companies in Nigeria. This study used the Roychowdhury approach to measure real earnings management. Thirty-four (34) manufacturing companies out of seventy-three (73) population that were listed on the Nigerian Exchange (NGX) from 2007 to 2021 was selected as sample size. Data was gleaned from the annual financial reports of the sampled companies for this study. Descriptive statistics, Pearson correlation, and quantile regression analysis are the econometric techniques used to test the analysed data and for hypothesis testing. Results from the study showed that managerial ownership significantly affects real-earnings management. When the effect was moderated by the financial expertise of the audit committee, the effect of ownership structure on real earnings management disappears. The result from the study show that managers of manufacturing firms in Nigeria should be encouraged to own more shares in the companies they manage in order to minimize real earnings management. The evidence can theoretically serve as a solid foundation for regulatory action, notably through improving the alignment of managers' and shareholders' interests. The results from this study have important implications for regulators, who will gain from understanding how managerial ownership affects real earnings management and improve the accuracy of financial reporting. The findings will also help policymakers and academics to understand how managerial ownership affects real earnings management in Nigeria.

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Institutional ownership and earnings management: Evidence from India

Cited by 13 publications

References 45 publications

Board influence on accruals management and the role of ownership structure: Evidence from Bangladesh

Board influence on accruals management and the role of ownership structure: Evidence from Bangladesh

Pengaruh Kepemilikan Manajemen, Kepemilikan Institusional dan Ukuran Perusahaan Terhadap Nilai Perusahaan dengan Kebijakan Hutang sebagai Variabel Intervening

Effect of Managerial Ownership and Audit Committee Financial Expertise on Earnings Management of Listed Manufacturing Companies in Nigeria

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