“…It was also noted by Tran (2014) that managerial ownership was negatively associated with the cost of financing, but it enhanced corporate investments (Mykhayliv & Zauner, 2017), and it encouraged companies to have long-term growth (Nakabayashi, 2019). It appears that when directors were also shareholders, markets tend to react more favourably (Qian, Sun, & Yu, 2018).…”
Section: Managerial Ownership Ifrs Adoption and Eqmentioning
Manuscript type: Research paper Research aims: This study examines whether managerial and institutional ownership is associated with higher earnings quality (EQ) after the implementation of International Financial Reporting Standards (IFRS), in comparison to the pre-IFRS period. It also examines the moderating effect of investor protection (INPT) on the link between ownership structure and EQ. Design/Methodology/Approach: This study uses a dynamic panel data modelling on a sample of 2090 firm-year observations, from 2007-2016, in Malaysia. This study applies the generalized method of moments (GMM) to deal with the econometric problems. Research findings: The results indicate that managerial ownership is essential for improving EQ before and after IFRS adoption. No
“…It was also noted by Tran (2014) that managerial ownership was negatively associated with the cost of financing, but it enhanced corporate investments (Mykhayliv & Zauner, 2017), and it encouraged companies to have long-term growth (Nakabayashi, 2019). It appears that when directors were also shareholders, markets tend to react more favourably (Qian, Sun, & Yu, 2018).…”
Section: Managerial Ownership Ifrs Adoption and Eqmentioning
Manuscript type: Research paper Research aims: This study examines whether managerial and institutional ownership is associated with higher earnings quality (EQ) after the implementation of International Financial Reporting Standards (IFRS), in comparison to the pre-IFRS period. It also examines the moderating effect of investor protection (INPT) on the link between ownership structure and EQ. Design/Methodology/Approach: This study uses a dynamic panel data modelling on a sample of 2090 firm-year observations, from 2007-2016, in Malaysia. This study applies the generalized method of moments (GMM) to deal with the econometric problems. Research findings: The results indicate that managerial ownership is essential for improving EQ before and after IFRS adoption. No
“…Qian et al . (2018) show that a higher level of managerial ownership, when combined with CEO duality and weaker controlling shareholder rights, is associated with decreased stock price efficiency for listed firms in China. Therefore, our first auxiliary hypotheses are as follows: H 1 : Management ownership has no effect on the impact of ATPs on the cost of debt for firms in China . H 1 a : Managerial ownership enhances the impact of ATPs on the cost of debt for firms in China .…”
Section: Hypotheses Developmentmentioning
confidence: 99%
“…As to the agency channel of the impact of ATPs, certification by a reputable auditor is an important external governance mechanism for firms facing weaker control market threats due to the existence of ATPs (Fan and Wong, 2005). More specifically, the deteriorating agency problem induced by ATPs may result in a lower quality of accruals and increased opportunities for managers to commit financial misconduct (Qian et al ., 2018). As a result, a reputable auditor, who potentially assures the quality of publicly reported accounting information, can restrain managers’ adverse selections and improve the quality of the information environment for investors (Autore et al ., 2009).…”
Using a sample of Chinese listed companies, we investigate the impact of anti‐takeover provisions (ATPs) on the cost of debt. The results show that ATPs increase the cost of debt, which is contrary to findings based on US data. Moreover, executive ownership enhances the positive relationship, while hiring a reputable auditor attenuates it, indicating an agency channel. We further examine the relation between agency costs and ATPs and confirm that ATPs aggravate agency costs, leading to detrimental effects for debt borrowers. Our findings are robust to controlling for potential endogeneity issues and other robustness checks.
“…Building on his own investment philosophy, which is an expression of his personality, abilities, knowledge, tastes and objectives, as a result, no two investors are very successful, who share the same investment philosophy [37]. Forming, testing his own personal system [43] to choose, buy and sell investments. It is not true that investment diversification is the key to gaining great wealth, the portfolio of expert investors is concentrated, and it focuses its energy much more intensely and is far more effective in recognizing the right investment [42].…”
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