TY  - JOUR
AB  - This study examines the relation between managerial ownership structure and earnings management. Unlike previous research which treats insiders as a homogeneous group, we further classify insiders into executives, outside directors, and blockholders to conduct an in‐depth study. Earnings management is captured by discretionary accruals that are estimated using the modified Jones model. For a large sample of Taiwanese listed firms over the period 1997 and 2004, we find that discretionary accruals first increase and then decrease with executive ownership, forming an inverted U‐shaped relationship. However, discretionary accruals are positively affected by director ownership and blockholder ownership. The results suggest that equity stake owned by top officers of a firm should be encouraged in order to reduce agency cost, thus enhancing information content of earnings.
VL  - 6
IS  - 1
SN  - 1985-2517
DO  - 10.1108/19852510880000634
UR  - https://doi.org/10.1108/19852510880000634
AU  - Yang Chi‐Yih
AU  - Lai Hung‐Neng
AU  - Leing Tan Boon
PY  - 2008
Y1  - 2008/01/01
TI  - Managerial Ownership Structure and Earnings Management
T2  - Journal of Financial Reporting and Accounting
PB  - Emerald Group Publishing Limited
SP  - 35
EP  - 53
Y2  - 2024/04/16
ER  -