The Investigation of Association Between Short-term and Long-term Institutional Ownership and Aggressive Corporate Earnings Management

Document Type : Research Paper

Authors

Abstract

Institutional ownership is classified in two general groups, short-term and long-term. Short-term institutional ownership because, for the focus excessively on current earnings and short-term incomes can invented various motivations for firm’s managers to do aggressive corporate earnings management. In apart, long-term institutional ownership have long-term investing horizon and focus on stock price rather than current earnings, and so have many stimulant to participated in corporate governance activities so can prevent managers to do aggressive corporate earnings management.
     The aim of this study is to produce reasons about effect of each group of institutional ownership on the aggressive corporate earnings management in Tehran stock exchange (TSE). This study made upon ex-post factor-descriptive research dozen and for test hypothesis use regression analyses with pool data by way of combination time-series and cross-section with use of financial information of 165 firms which traded over the 1382-1386. The result of this study is in line with prior exceptions and shows that short-term institutional ownerships have positive and statically significant effect on aggressive corporate earnings management, and long-term institutional ownership have negative and statically effect on aggressive corporate earnings management.

Keywords

References

- اشرف زاده، سیدحمیدرضا و مهرگان، نادر، (1387) اقتصاد سنجی پانل دیتا، تهران، مؤسسه تحقیقات دانشگاه تهران
- حساس یگانه، یحیی مرادی، محمد؛ و هدا اسکندر (1387)"بررسی رابطه بین سهامداران نهادی و ارزش شرکت »فصلنامه بررسیهای حسابداری و حسابرسی، شماره 52، تابستان 87، ص122-107.
- حسینی، سید مجتبی، (1386) اثر میزان سهامداران نهادی به عنوان یکی از معیارهای حاکمیت شرکتی بر وازده سهامداران. پایان نامه کارشناسی ارشد، دانشکده مدیریت دانشگاه تهران.
 - گجراتی، دامودار، (1386)، مبانی اقتصاد سنجی، ترجمه دکتر حمید ابریشمی، مؤسسه انتشارات و چاپ دانشگاه تهران. چ ششم. تهران.
- مشایخی، بیتا؛ مهرانی، ساسان؛ مهرانی، کاوه؛ غلامرضا کرمی، (1384)، نقش اقلام تعهدی اختیاری در مدیریت سود شرکتهای پذیرفته شده در بورس اوراق بهادار تهران، بررسی‌های حسابداری و حسابرسی، شماره 42، صص61-74.
- مرادی، محمد.(1386) بررسی رابطه بین سرمایه گذاران نهادی و کیفیت سود، دانشکده مدیریت دانشگاه تهران، پایان نامه کارشناسی ارشد حسابداری.
- Almazon, A., Hartzell, J., and Starks, L.T., )2005(, "Active institutional shareholders and cost of monitoring: Evidence from managerial compensation," Working paper, University of Texas at Austin.
- Bartov, E,ORadhakrishnan, S. and Krinsky, I.,)2000(,"Investor Sophistica-tion and Patterns in Stock and Returns," The Accounting review, pp. 43-44.
- Bushee, B. J. (2001), "Do Institutional Investors Prefer Near-Term Earnings over Long-Run Value?" Graduate School of Business Administration.
- Cheng, C. A. Reitenga, A. )2002(, "Institutional investors and discretionary accruals," Journal of Accounting and Finance, Vol. 38, pp. 181-196.
- Dobrzynski, J. )1993(, "Relationship Investing: A New Shareholder Is Emerging-Patient and Involved," Business Week, Vol. 15, pp. 68-75.
- Yan P. E. and Yue Liu, L. (2006), "Institutional Ownership Composition and Accruals Quality,” Working Paper, College of Business Administration Fordham University, Harvard University
- Graws, S. )1998(, "Institutional ownership and corporate R&D in the computer industry," Academy of Management Journal, Vol. 31, 417-428.
- Ping- Sheng, K. (2003), "On the association between institutional ownership and aggressive corporate earnings management in Australia,” British Accounting Review, Vol. 35, pp. 105-135.
- Mark, H. Liu., andYawen, J. )2008(, "Independent Institutional Investors and Equity Returns. Gatton College of business and economics," Working Paper, University of Kentucky.
- Monks, R. and Minow. N.)1995(, "Corporate Governance," university of Cambridge, MA: Black Well.
- Porter, M.E. )1992(, "Capital disadvantage: America's falling Capital Investment System," Harvard Business Review, pp. 65-82.
- Salma S. I., )2005(, "An alternative measure to detect intentional earnings management through discretionary accruals," Ph.D Dissertation, University of Maryland.
- Solomon, J. F., Lin. S.W., Norton, S.D. and Solomon, A. (2003), "Corporate governance reform in Taiwan," Corporate governance: An international Review.
Journal of Accounting Knowledge
Volume 1, Issue 3 - Serial Number 3
November 2011
Pages 7-29

Files

History

  • Receive Date: 22 June 2010
  • Revise Date: 27 August 2010
  • Accept Date: 22 November 2010

Share

How to cite

Statistics