全部 标题 作者
关键词 摘要

OALib Journal期刊
ISSN: 2333-9721
费用:99美元

查看量下载量

相关文章

更多...

Ownership Structure and Earnings Management: Evidence from Portugal

Keywords: Earnings management , Discretionary accruals , Ownership structure , Ownership concentration

Full-Text   Cite this paper   Add to My Lib

Abstract:

This paper examines the relationship between corporate ownership structure in Portugal and earnings management. The Portuguese governance structure is characterised by the dominance ofthe largest shareholder who typically exercises significant influences on management decisions directly or indirectly. Existing literature suggests that ownership structure decreases the incentive to manage earnings but also provides the opportunity and incentive to manipulate earnings. Therefore, the main purpose of this paper is to analyse whether a firm’s ownership structure (measured with three variables: managerial ownership, ownership concentration and institutional ownership)exacerbate or alleviate earnings management. Using a sample of 34 non-financial listed Portuguese firms for years from 2002 to 2007, we find that discretionary accruals as a proxy for earnings management is negatively related both to managerial ownership and to ownership concentration. The study’s results suggest that both managerial ownership and ownership concentration improvethe quality of annual earnings by reducing the levels of earnings management.

Full-Text

Contact Us

service@oalib.com

QQ:3279437679

WhatsApp +8615387084133