Institutional ownership, earnings management and earnings surprises: evidence from 39 years of U.S. data

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dc.contributor.authorDavis, Justin G.
dc.contributor.authorGarcıa-Cestona, Miguel
dc.date.accessioned2024-02-01T22:21:15Z
dc.date.accessioned2024-03-18T15:49:37Z
dc.date.available2024-02-01T22:21:15Z
dc.date.available2024-03-18T15:49:37Z
dc.date.issued2023-12-11
dc.description.abstractPurpose: As the influence of institutional investors over managerial decision-making grows, so does the importance of understanding the effect of institutional investor ownership (IO) on firm outcomes. The authors take a comprehensive approach to studying the effect of IO on earnings management (EM). Design/methodology/approach: The authors study the relation between IO and EM using a sample of 59,503 listed U.S. firm-year observations from 1981–2019. The authors proxy EM with earnings surprises and with accrual-based and real activity measures. The authors test for nonlinear relations and analyze changes resulting from the passage of the Sarbanes–Oxley Act. Findings: The findings support a positive IO-EM relation overall, but show that the relation is dynamic and heavily context-dependent with evidence of nonlinearity. The authors also find evidence that IO positively affects accrual-based EM and real activities EM negatively. Originality/value: To the authors’ knowledge, this is the first study of the IO-EM relation to consider evidence of nonlinearity in the U.S. context, measuring changes to the relation over time, and with the use of several measures of EM.en_EN
dc.identifier.citationDavis, J. G., & Garcıa-Cestona, M. (2023). Institutional ownership, earnings management and earnings surprises: evidence from 39 years of U.S. data. Journal of Economics, Finance and Administrative Science, 28(56), 218–236. https://doi.org/10.1108/JEFAS-01-2023-0021
dc.identifier.doihttps://doi.org/10.1108/JEFAS-01-2023-0021
dc.identifier.urihttps://hdl.handle.net/20.500.12640/3841
dc.language.isoeng
dc.publisherUniversidad ESAN. ESAN Ediciones
dc.publisher.countryPE
dc.relation.ispartofurn:issn:2218-0648
dc.relation.urihttps://revistas.esan.edu.pe/index.php/jefas/article/view/683/550
dc.rightsAttribution 4.0 International*
dc.rightsinfo:eu-repo/semantics/openAccesses_ES
dc.rights.urihttps://creativecommons.org/licenses/by/4.0
dc.subjectFinancial reporting qualityen_EN
dc.subjectInstitutional investor ownershipen_EN
dc.subjectEarnings managementen_EN
dc.subjectEarnings surprisesen_EN
dc.subjectCorporate governanceen_EN
dc.subjectNonlinearityen_EN
dc.subjectCalidad de los informes financieroses_ES
dc.subjectPropiedad de inversores institucionaleses_ES
dc.subjectGestión de beneficioses_ES
dc.subjectSorpresas en los resultadoses_ES
dc.subjectGobierno corporativoes_ES
dc.subjectNo linealidades_ES
dc.subject.ocdehttps://purl.org/pe-repo/ocde/ford#5.02.04
dc.titleInstitutional ownership, earnings management and earnings surprises: evidence from 39 years of U.S. dataen_EN
dc.typeinfo:eu-repo/semantics/article
dc.type.otherArtículo
dc.type.versioninfo:eu-repo/semantics/publishedVersion
oaire.citation.endPage236
oaire.citation.issue56
oaire.citation.startPage218
oaire.citation.titleJournal of Economics, Finance and Administrative Science
oaire.citation.volume28
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JEFAS Vol. 28 Nº 56 (2023)