Journal of Accounting and Finance
Corporate governance, Blockholders, Earnings management, Accrual quality
Business | Finance and Financial Management
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.
Korkmaz, Aslihan G.; Ma, Qingzhong; and Zhou, Haigang, "Blockholder Characteristics and Earnings Quality" (2017). Business Faculty Publications. 290.
This is the accepted version of a work that was originally published in the Journal of Accounting and Finance. The work can be found at: Korkmaz, A.G., Ma, Q., & Zhou, Haigang. (2017). Blockholder characteristics and earnings quality. Journal of Accounting and Finance, 17, 3, https://www.articlegateway.com/index.php/JAF/article/view/957