Ownership Structure and Earnings Management

Alexander, Nico

doi:10.35609/afr.2019.4.2(1)

Cited by 8 publications

(17 citation statements)

References 10 publications

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“…Alexander membuktikan bahwa kepemilikan institusional berpengaruh negatif terhadap earnings management 67 . Affan et al menjelaskan bahwa hal ini terjadi karena aktivitas yang dijalankan dalam kepemilikan institusional dapat menambah kualitas pelaporan keuangan dengan pengecekan manajemen yang pada akhirnya mengurangi konflik keagenan 68 .…”

Section: Kepemilikan Institusional Dan Earning Managementunclassified

The Influence of Ownership Structure, Debt Structure, and Independent Commissioner on Earning Management

2021

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PendahuluanMaraknya aktivitas earnings management bukan menjadi persoalan baru di negara-negara Eropa dan Asia. Kasus manipulasi laporan keuangan sudah ada sebelumnya seperti Parmalat di Italia, Enron dan WorldCom di AS, hukum Benford di Taiwan, dan Indofarma di Indonesia 1 . Secara khusus jumlah kasus earnings management di Indonesia selalu ada setiap tahun. Hal ini dibuktikan dengan beberapa kasus seperti pemalsuan laporan keuangan di PT

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Section: Kepemilikan Institusional Dan Earning Managementunclassified

The Influence of Ownership Structure, Debt Structure, and Independent Commissioner on Earning Management

2021

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“…Guna and Herawaty (2010) also added that, as a governance mechanism, the ownership concentration enhances auditor independence and audit quality, and therefore auditor independence and audit quality affect earnings manipulation negatively. Besides, Bao and Lewellyn (2017) and Alexander (2019) argued that controlling shareholders influences managers and thus earnings manipulation because they aim to maximize the return on their investment. Wiranata and Nugrahanti (2013) also argued that greater foreign ownership in an organization refers to appointing more foreign representatives within an organization.…”

Section: Ownership Structure and Earnings Manipulationmentioning

confidence: 99%

Ownership Structure, Earnings Manipulation, and Organizational Performance: The Case of Jordanian Insurance Organizations

Alqirem¹,

Afifa²,

Saleh³

et al. 2020

JAFEB

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This study aims to investigate the direct relationship between ownership structure, earnings manipulation, and organizational performance, and then examine the mediating effect of earnings manipulation in the relationship between ownership structure and organizational performance. This study collected and analyzed secondary data published in financial reports related to all insurance organizations listed in the Jordanian market during the study period (from 2009 until 2018). A panel data analysis was conducted, giving a total of 200 observations. The findings of this study concluded that ownership concentration, foreign ownership, and organization size affect organizational performance proxied by ROA, ROE, and EPS, more specifically, ownership concentration and organization size have a positive effect, whereas foreign ownership has a negative effect. At the same time, board of director ownership, organizational ownership, and CEO compensation did not affect organizational performance. Next, the board of director ownership, ownership concentration, foreign ownership, and CEO compensation affect earnings manipulation separately. In addition, earnings manipulation positively affects organizational performance proxied by ROA, ROE and EPS. This means that the higher the earnings manipulation is, the higher the organizational performance is. Finally, earnings manipulation mediates the relationship between ownership concentration and foreign ownership of ownership structure, and organizational performance.

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“…According to Alexander (2019), "Foreign ownership refers to the portion of shares held by foreign investors, i.e. companies owned by individuals, legal entities, the government, and their sections of foreign status.…”

Section: Foreign Ownership and Earnings Managementmentioning

confidence: 99%

“…According to Anwar and Buvanendra (2019), stakeholders are also interested in understanding the issues of earnings management as earnings management is used to put a curtain on the actual accounting information. Due to the monitoring cost and dispersion between the shareholders and management, there is always a chance for the management to show earnings that are not actual (Alzoubi, 2016;Alexander, 2019).…”

Section: Introductionmentioning

confidence: 99%

Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh

Hossain

2020

J. Fin. Bank. Review

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Objective – This study aims to examine the relationship between ownership structure (determined by institutional and foreign ownership) and earnings management in the context of Bangladeshi Pharmaceuticals and Chemical firms. Methodology/Technique – Out of 32 listed firms, this study examined 29 firms from the pharmaceuticals and chemical industry of Bangladesh from 2014 to 2018. Three firms are omitted as they got listed in 2018 and 2019 respectively. This study uses discretionary working capital accrual to measure earnings management that is the dependent variable. Ordinary least square regression analysis is conducted to assess the result of this study. Institutional and foreign ownership are independent variables. ROA, size, cash flow from operation, and leverage are control variables. Findings – It is found that institutional ownership is negatively related to earnings management and foreign ownership is positively related to earnings management but none of them are statistically significant indicating institutional and foreign ownership do not help in resolving or reducing the earnings management problems in the context of Bangladeshi pharmaceuticals and chemical firms. Novelty – Previous studies in Bangladesh deal only with the techniques of earnings management. To my knowledge, it is the first study that tries to assess the relationship of ownership structure defined by institutional and foreign shareholdings with earnings management in the context of Bangladeshi pharmaceuticals and chemical firms. These two ownership patterns are selected because they are supposed to increase the quality of financial information and also because in Bangladesh state and general shareholders are too dispersed to monitor the governance issues. The practical implications of this study is that investors should not consider institutional and foreign ownership percentage as a determining factor of good governance when considering investment decisions rather should look for other firm-specific factors as institutional and foreign shareholders are found to be inactive in increasing the quality of financial information in the context of Bangladesh. Policymakers should identify why institutional and foreign shareholders are not active and should revise the governance mechanisms accordingly. Type of Paper: Empirical Keywords: Ownership structure; Institutional Shareholdings; Foreign Shareholdings; Earnings Management; Bangladesh. Reference to this paper should be made as follows: Hossain, D.A. 2020. Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh, J. Fin. Bank. Review, 5 (2): 58 – 69 https://doi.org/10.35609/jfbr.2020.5.2(3) JEL Classification: G40; G41; G49.

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Ownership Structure and Earnings Management

Cited by 8 publications

References 10 publications

The Influence of Ownership Structure, Debt Structure, and Independent Commissioner on Earning Management

The Influence of Ownership Structure, Debt Structure, and Independent Commissioner on Earning Management

Ownership Structure, Earnings Manipulation, and Organizational Performance: The Case of Jordanian Insurance Organizations

Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh

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