Earnings Management and Ownership Concentration - Based on the Impact of Restricted Shares
Abstract
Based on the data of A-share listed companies in China's securities market, this paper examines the relationship between earnings management and ownership concentration. It is found that the ownership concentration has a significant governance effect on earnings management when the restricted shares are excluded. The higher the ownership concentration is, the lower the level of earnings management is. In the case of restricted shares, the opposite is true. The higher the equity concentration is, the higher the level of earnings management is.
References
Aloke (Al) Ghosh, DoocheolMoon. Corporate Debt Financing and Earnings Quality [J]. Journal of Business Finance & Accounting 2010(5‐6).
BENJAMIN C. AYERS, STACIE KELLEYLAPLANTE, SEAN T. MCGUIRE. Credit Ratings and Taxes: The Effect of Book–Tax Differences on Ratings Changes*[J]. Contemporary Accounting Research 2010(2).
Daniel A. Cohen, Paul Zarowin. Accrual-based and real earnings management activities around seasoned equity offerings [J]. Journal of Accounting and Economics 2010(1).
Earnings Management Using Real Activities: Evidence from Nonprofit Hospitals [J]. The Accounting Review 2011(5).
Gary L. Caton,Chiraphol N. Chiyachantana, Choong-Tze Chua, Jeremy Goh. Earnings Management Surrounding Seasoned Bond Offerings: Do Managers Mislead Ratings Agencies and the Bond Market? [J]. Journal of Financial and Quantitative Analysis 2011(3).
Hashem Valipour,Mehdi Moradbeygi. Corporate Debt Financing and Earnings Quality [J]. Journal of Applied Finance & Banking 2011(3).
KATHERINE A. GUNNY. The Relation Between Earnings Management Using Real Activities Manipulation and Future Performance: Evidence from Meeting Earnings Benchmarks*[J]. Contemporary Accounting Research 2010(3).
Patricia M. Dechow, Amy P. Hutton, Jung Hoonkim, Richard G. Sloan. Detecting Earnings Management: A New Approach [J]. Journal of Accounting Research 2012(2).
Watts, R.L. & Zimmerman, J.L. Positive accounting theory [M]. New Jersey: Prentice-Hall Inc., 1986.
YixinLiu, YixiNing, Wallace N. Davidson III. Earnings Management Surrounding New Debt Issues [J]. Financial Review 2010(3).
Copyright (c) 2021 Ying Wang
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors contributing to this journal agree to publish their articles under the Creative Commons Attribution-Noncommercial 4.0 International License, allowing third parties to share their work (copy, distribute, transmit) and to adapt it, under the condition that the authors are given credit, that the work is not used for commercial purposes, and that in the event of reuse or distribution, the terms of this license are made clear. With this license, the authors hold the copyright without restrictions and are allowed to retain publishing rights without restrictions as long as this journal is the original publisher of the articles.
