[PDF][PDF] Accrual-based versus real earnings management; the effect of ownership structure: Evidence from East Africa
JP Swai, CS Mbogela - ACRN Oxford Journal of Finance and Risk …, 2016 - acrn-journals.eu
ACRN Oxford Journal of Finance and Risk Perspectives, 2016•acrn-journals.eu
Existing literature suggests that different ownership structure have different impact on
earnings management. The findings from prior studies provide confliction and contradicting
results regarding the relationship between ownership structure and earnings management.
We examine whether ownership structure has impact on both accrual-based and real
earnings management. Using a sample of 44 non-financial East African listed firms for years
from 2003 to 2013, we find little evidence to suggest that ownership structure has animpact …
earnings management. The findings from prior studies provide confliction and contradicting
results regarding the relationship between ownership structure and earnings management.
We examine whether ownership structure has impact on both accrual-based and real
earnings management. Using a sample of 44 non-financial East African listed firms for years
from 2003 to 2013, we find little evidence to suggest that ownership structure has animpact …
Abstract
Existing literature suggests that different ownership structure have different impact on earnings management. The findings from prior studies provide confliction and contradicting results regarding the relationship between ownership structure and earnings management. We examine whether ownership structure has impact on both accrual-based and real earnings management. Using a sample of 44 non-financial East African listed firms for years from 2003 to 2013, we find little evidence to suggest that ownership structure has animpact on accrual-based earnings management in East Africa. However, we find that ownership concentration and institutional ownership has significant negative effect on real earnings management. Therefore our results highlight the importance of analyzing both earnings management strategies in order come up with a definitive conclusion.
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