2017
DOI: 10.1111/jbfa.12239
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The Role of Foreign Shareholders in Disciplining Financial Reporting

Abstract: We investigate the role of foreign shareholders in improving the quality of accounting information provided by firms domiciled in countries with low de facto institutional quality. Using a sample of firms from four South European countries (Greece, Italy, Portugal and Spain) for which we observe detailed ownership evolutions over the period 2002-2007, we find that increases in foreign ownership lead to increases in financial reporting quality but only if the foreign shareholders are domiciled in countries with… Show more

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Cited by 54 publications
(63 citation statements)
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References 86 publications
(155 reference statements)
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“…For the sake of comparability, we provide some references of our sample characteristics with regard to other studies using Spanish data. As expected, our sample firms are smaller and less leveraged than listed Spanish firms included in the sample of Beuselinck, Blanco, and García-Lara (2017). As compared to the private firms with audited financial statements used in Cano-Rodríguez and Sánchez-Alegría (2012), our sample firms are larger, and have higher growth rates, while they are similar in terms of leverage and profitability.…”
Section: Wcdacsupporting
confidence: 54%
See 3 more Smart Citations
“…For the sake of comparability, we provide some references of our sample characteristics with regard to other studies using Spanish data. As expected, our sample firms are smaller and less leveraged than listed Spanish firms included in the sample of Beuselinck, Blanco, and García-Lara (2017). As compared to the private firms with audited financial statements used in Cano-Rodríguez and Sánchez-Alegría (2012), our sample firms are larger, and have higher growth rates, while they are similar in terms of leverage and profitability.…”
Section: Wcdacsupporting
confidence: 54%
“…: Beuselinck, Blanco, & García-Lara, 2017). However, these results cannot be extrapolated to private firms because they are different from public firms along a number of important dimensions that determine financial reporting quality .…”
Section: Introductionmentioning
confidence: 93%
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“…Authors agree that this article remain permanently open access under the terms of the Creativ e Commons Attribution License 4.0 International License Ding et al, 2007;Liu and Lu, 2007;Roodposhti and Chashmi, 2011;Wang and Yung, 2011), or foreign investors (Beuselinck et al, 2013). Although the findings of previous studies are not conclusive, in most cases the existence of a relationship between the type and characteristics of shareholders and earnings management practices has been discovered.…”
Section: Introductionmentioning
confidence: 83%