Document Type

Article

Publication Date

6-30-2017

Publication Title

Journal of Accounting and Finance

Keywords

Corporate governance, Blockholders, Earnings management, Accrual quality

Disciplines

Business | Finance and Financial Management

Abstract

This study focuses on the impact of blockholder characteristics on earnings quality. Most of the studies in
literature make the implicit assumption that blockholders are a homogeneous group. This study is one of
few studies that acknowledges the heterogeneity of blockholders and attempts to understand the
unexplained proportion of blockholder heterogeneity. Earnings quality is calculated using the modified
Dechow and Dichev (2002) model with fixed effects (FDD model) by Lee and Masulis (2009), and it is
regressed on various blockholder characteristics. The results show that earnings quality is lower for
firms with market-driven and multilateral blockholders.

Version

Postprint

Volume

17

Issue

3

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