The interaction effect of Institutional Ownership and Firm Size on the relationship between Managerial Ownership and Earnings Management

Popoola, Oluwatoyin Muse Johnson and Ratnawati, Vince and Hamid, Mohamad Ali Abdul (2016): The interaction effect of Institutional Ownership and Firm Size on the relationship between Managerial Ownership and Earnings Management. Published in: International Conference on Accounting Studies (ICAS 2016) , Vol. 3, No. 1 (30 December 2016): pp. 304-310.

Abstract

Prior studies examine the influence of institutional ownership and managerial ownership on earnings management with conflicting results. This research investigates the inconsistent results with a developed framework through the interaction effect of institutional ownership and firm size on the relationship between managerial ownership and earnings management. The study carries out a test using a sample of 115 manufacturing companies listed on Indonesian Stock Exchange from 2008 to 2012. The least square regression analysis serves as statistical analysis tool of the study. The study shows that managerial ownership affects earnings management practices. Institutional ownership and firm size moderate the relationship between managerial ownership and earnings management. The presence of institutional ownership possesses the likelihood of a reduction in the practice of earnings management.

• Item Type: MPRA Paper
• Language: English
• Keywords: Managerial Ownership, Institutional Ownership, Firm Size, Earnings Management, Listed Manufacturing Companies, Developing Country
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M0 - General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing

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