Business, Management and Accounting
3 years ago

Institutional ownership reduces earnings manipulation in manufacturing companies.

Academy of Accounting and Financial Studies journal
Institutional and Managerial Ownership on Earnings Management: Corporate Governance
Yulius Kurnia Susanto, Arya Pradipta, Hendang Tanusdjaja Felix Irwanto, ojo

Paper Summary

The research looked at how institutional and managerial ownership affect earnings management in manufacturing companies. They studied 107 companies listed on the stock exchange and found that institutional ownership significantly reduces earnings manipulation, while managerial ownership doesn't have a significant impact. This means that big investors want companies to report their financial performance accurately, especially when it comes to profits.

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