Using a large sample of Korean firms listed on the Korea Exchange, we investigate the effect of institutional blockholders on earnings management. We provide evidence that the presence of institutional blockholders reduces earnings management. Our results are qualitatively not distinguishable between domestic institutional blockholders and foreign institutional blockholders. We also find that institutional blockholders take earnings management into consideration for their investment decision. This result also applies to all blockholders regardless of their national origin. In additional analysis, we find that institutional blockholders enhance accruals quality. Our results indicate that both domestic and foreign institutional blockholders play a monitoring role to deter management opportunistic behavior.
Key words: Institutional investors, earnings management, earnings quality, monitoring
학회소식
[2013년 제 1차] Institutional Blockholders and Earnings Management
작성자 : 관리자
조회수 : 1160
게시일 :
2013-03-04
