Ownership Structure and Earning Management – A Literature Review

Wery Andriani, Novi Amelia, Maretha Primadyan

Abstract


This study aims to provide insight into earnings management in companies with various ownership types. This empirical research focuses on a literature review of the relationship between earnings management and corporate ownership. The results of this study found that differences in corporate ownership can influence decisions related to earnings management.

Keywords


Earning Management, Managerial Ownership, Institutional Ownership, State Ownership, Family Ownership

Full Text:

PDF

References


Ajay, R., Madhumathi, R., 2015. Institutional ownership and earnings management in India. Indian Journal of Corporate Governance, 8(2), 119–136.

Ajina, A., Habib, A., 2017. Examining the relationship between earning management and market liquidity. Research in International Business and Finance.

Al-Duais, S. D., Malek, M., Abdul Hamid, M. A., Almasawa, A. M., 2022. Ownership structure and real earnings management: evidence from an emerging market. Journal of Accounting in Emerging Economies, 12(2), 380-404.

Attig, N., Chen, R., El Ghoul, S., Guedhami, O., Kwok, C. C. Y., Pittman, J., 2017) Are Insiders Equal? Evidence from Earnings Management in Closely Held East Asian Firms. SSRN Electronic Journal, June.

Bao, S. R., Lewellyn, K. B., 2017) Ownership structure and earnings management in emerging markets—An institutionalized agency perspective. International Business Review, 26(5), 828–838.

Berrone, P., Cruz, C., Gomez-Mejia, L. R., 2012. Socioemotional Wealth in Family Firms: Theoretical Dimensions, Assessment Approaches, and Agenda for Future Research. Family Business Review, 25(3), 258–279.

Brink, A. G., Gouldman, A., Rose, J. M., Rotaru, K., 2020. Effects of superiors’ compensation structures on psychophysiological responses and real earnings management decisions of subordinate managers. Management Accounting Research.

Chen, D., Li, J., Liang, S., Wang, G., 2011. Macroeconomic control, political costs and earnings management: Evidence from Chinese listed real estate companies. China Journal of Accounting Research.

Cheng, C. S. A., Wang, J., Wei, S. X., 2015. State ownership and earnings management around initial public offerings: Evidence from China. Journal of International Accounting Research, 14(2), 89–116.

Chi, C. W., Hung, K., Cheng, H. W., Tien Lieu, P., 2015. Family firms and earnings management in Taiwan: Influence of corporate governance. International Review of Economics and Finance, 36, 88–98.

Claessens, S., Djankov, S., Lang, L. H. P., 2000. East Asian corporations. Heroes or villains? In World Bank Discussion Papers, 58(409).

Dong, N., Wang, F., Zhang, J., Zhou, J., 2020. Ownership structure and real earnings management: Evidence from China. Journal of Accounting and Public Policy, 106733.

Elyasiani, E., Wen, Y., Zhang, R., 2017. Institutional Ownership and Earning Management By Bank Holding Companies. Journal of Financial Research, 40(2), 147–178.

Eng, L. L., Fang, H., Tian, X., Yu, T. R., Zhang, H., 2019. Financial crisis and real earnings management in family firms: A comparison between China and the United States. Journal of International Financial Markets, Institutions and Money, 59, 184–201.

Eugster, N., Isakov, D., 2019. Founding family ownership, stock market returns, and agency problems. Journal of Banking and Finance, 107, 105600.

Ferreira, M. A., 2012. Universal Banks and Corporate Control : Evidence from the Global Syndicated Loan Market

Fogel-Yaari, H., Ronen, J., 2020. Earnings management strategies for meeting or beating expectations. Journal of Accounting and Public Policy.

Gomez-Mejia, L. R., Cruz, C., Berrone, P., de Castro, J., 2011. The Bind that ties: Socioemotional wealth preservation in family firms. In Academy of Management Annals.

Han, M., Ding, A., Zhang, H., 2022. Foreign ownership and earnings management. International Review of Economics & Finance, 80, 114-133.

Huyghebaert, N., Wang, L., 2012. Expropriation of Minority Investors in Chinese Listed Firms: The Role of Internal and External Corporate Governance Mechanisms. Corporate Governance: An International Review, 20(3), 308–332.

Jensen, M. C., Meckling, W. H., 1976a. Theory of the Firm: Managerial. Journal of Financial Economics, 3, 305–360.

Jensen, M. C., Meckling, W. H., 1976b. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics.

Kazemian, S., Sanusi, Z. M., 2015. Earnings Management and Ownership Structure. Procedia Economics and Finance, 31(15), 618–624.

Li, L., Kuo, C. S., 2017. CEO equity compensation and earnings management: The role of growth opportunities. Finance Research Letters.

Martin, G., Tochman, J., Gomez-mejia, L., 2016. Family Control , Socioemotional Wealth and Earnings Management in Publicly Traded Firms. Journal of Business Ethics, 453–469.

Moslemany, R. El., 2019. Ownership structure and Earnings Management : evidence from Egypt. 7(1), 18–33.

Nguyen, H. A., Lien Le, Q., Anh Vu, T. K., 2021. Ownership structure and earnings management: Empirical evidence from Vietnam. Cogent Business and Management.

O’Callaghan, S., Ashton, J., Hodgkinson, L., 2018. Earnings management and managerial ownership in private firms. Journal of Applied Accounting Research, 19(4), 648–668.

Ramalingegowda, S., Utke, S., Yu, Y., 2021. Common institutional ownership and earnings management. Contemporary Accounting Research, 38(1), 208-241

Sáenz González, J., García-Meca, E., 2014. Does Corporate Governance Influence Earnings Management in Latin American Markets? Journal of Business Ethics, 121(3), 419–440.

Sakaki, H., Jackson, D., Jory, S., 2017. Institutional ownership stability and real earnings management. Review of Quantitative Finance and Accounting, 49(1), 227–244.

San Martin Reyna, J. M., 2018. The effect of ownership composition on earnings management: evidence for the Mexican stock exchange. Journal of Economics, Finance and Administrative Science, 23(46), 289–305.

Shayan-Nia, M., Sinnadurai, P., Mohd-Sanusi, Z., Hermawan, A. Ni. A., 2017. How efficient ownership structure monitors income manipulation? Evidence of real earnings management among Malaysian firms. Research in International Business and Finance, 41(October 2016), 54–66.

Tran, M. D., Dang, N. H., 2021. The Impact of Ownership Structure on Earnings Management: The Case of Vietnam. SAGE Open.




DOI: http://dx.doi.org/10.33087/ekonomis.v9i2.2451

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Ekonomis: Journal of Economics and Business Published by Lembaga Penelitian dan Pengabdian kepada Masyarakat
Adress: LPPM Universitas Batanghari, Jl.Slamet Ryadi, Broni-Jambi, Kec.Telanaipura, Kodepos: 36122, email: ekonomis.unbari@gmail.com, Phone: 0741-670700

Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.