Do Institutional Investors Enhance Accounting Earnings Attributes in the Korean Market?

The effect of corporate annual report quality on the relationship between institutional blockholder monitoring and firm's information environment

“…Recent literature has concentrated on the fraction of stocks owned by institutional investors that allow them to impact a company's decisions to effectively measure the monitoring effect of institutional ownership. According to Chen et al (2007) and (Chung et al, 2019), institutional blockholders who own a minimum 5% interest in investee firms positively impact firms' investment choices and overall financial well-being. Liu et al (2018) and (Chung et al, 2019) demonstrate that institutional blockholders diligently oversee earnings management within their portfolio companies.…”

“…According to Chen et al (2007) and (Chung et al, 2019), institutional blockholders who own a minimum 5% interest in investee firms positively impact firms' investment choices and overall financial well-being. Liu et al (2018) and (Chung et al, 2019) demonstrate that institutional blockholders diligently oversee earnings management within their portfolio companies. Dou et al (2016) investigate the impact of institutional blockholders on financial reporting and report agency problems between shareholders and managers, as the CEO mitigates information disclosure decisions with institutional blockholder monitoring.…”