Institutional Ownership and Earnings Management in India

Autor:	R. Madhumathi, Ranjitha Ajay
Rok vydání:	2015
Předmět:	Finance 050208 finance Earnings Earnings management business.industry Strategy and Management 0502 economics and business 05 social sciences Business Management and Accounting (miscellaneous) 050201 accounting Business and International Management business
Zdroj:	Indian Journal of Corporate Governance. 8:119-136
ISSN:	2454-2482 0974-6862
DOI:	10.1177/0974686215602368
Popis:	Influence of institutional ownership has been hypothesised to efficiently monitor the managerial decisions especially discretionary role of managers in reporting earnings. The managers have been found to misrepresent the quality of earnings for a dividend declaration; new issue; takeovers and for affirming debt holders of their financial position. Panel data methodology focusing on firms listed in CNX 500 in National Stock Exchange empirically examines the impact of institutional ownership on the earnings management practices in India. Earnings management is measured using discretionary accounting accruals. Firms with higher institutional holdings are found to have higher earnings quality thus restricting managers from using their discretionary powers to report earnings. Institutional ownership has a negative relationship with earnings management for larger and matured firms. Growing firms are found to be having higher earnings management. Institutional investors monitor the firms and hence reduce aggressive earnings management practices within the firm. Foreign institutional ownership also has a negative relationship with earnings management.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::775b1486068a2a00572dcc706da4df2f https://doi.org/10.1177/0974686215602368 Zobrazit plný text záznamu