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Institutional Investors Heterogeneity And Earnings Management: The R&D Investment Strategy
Iskandar REBAI
Pages - 122 - 131     |    Revised - 31-01-2011     |    Published - 08-02-2011
Volume - 1   Issue - 3    |    Publication Date - January / February  Table of Contents
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KEYWORDS
Institutional Investors, Earnings management, R&D
ABSTRACT
This study examines the association between different institutional investors\' ownership and earnings management practice through R&D expenditures. It investigates this relationship for a sample of 123 US firms. We examine also the effect of institutional ownership on earnings management of firms having different information environment (S&P 500 versus non S&P 500). Results show that while investment funds exacerbate earnings management by encouraging managers to limit R & D expenditures, pension funds and banks follow passive behaviors. Moreover, the hypothesis of the relevance of the environment information in the explanation of the institutional investors’ behavior seems to be important in our case.
CITED BY (9)  
1 Agca, A., & Önder, S. (2016). Isletmelerde Kar Yönetimi ve Kurumsal Yönetim Yapilari Arasindaki Iliski: BIST Üzerine Bir Uygulama. Muhasebe ve Denetime Bakis= Accounting & Auditing Review, 15(47), 23.
2 Amos, B., Ibrahim, G., Nasidi, M., & Ibrahim, K. Y. (2016). The Impact of Institutional Ownership Structure on Earnings Quality of Listed Food/Beverages and Tobacco Firms in Nigeria. Researchers World, 7(1), 20.
3 CENGIZ, S., Yusuf, G. Ö. R., & TERZI, S. (2016). KURUMSAL YÖNETIM ve KAZANÇ YÖNETIMI ARASINDAKI ILISKI: BORSA ISTANBUL’DA ISLEM GÖREN SIRKETLER ÜZERINE UYGULAMA. Uluslararasi Yönetim Iktisat ve Isletme Dergisi, 12(12), 756-770.
4 Fan Haifeng, & Hu Yuming. (2013). R&D expenditure, institutional investors and corporate earnings management. Scientific research management, 34(7), 24-30.
5 Idris, M. I. (2012). The impact of ownership structure and external audit on accruals and real activities earnings management in Jordan (Doctoral dissertation, University of Gloucestershire).
6 Fan Haifeng, & Hu Yuming. (2012). Institutional Investor Shareholding and Corporate R&D Expenditure: A Theoretical and Empirical Research Based on China’s Securities Market. Southern Economy, (9), 60-69.
7 FAN, H., HU, Y., & LI, Z. Earning Management, Institutional Investors and R&D Expenditure.
8 ALHADI, S. A., SENIK, R., & JOHARI, J. Institutional Ownership and Earnings Quality pre-and post-IFRS.
9 Ramadan, I. Z. (2012). The Impact of Institutional Investors on Firms Accounting Flexibility: Evidence from Jordan. International Journal of Economics and Finance, 4(6), 141-148.
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Dr. Iskandar REBAI
FSEG SFAX - Tunisia
r_iskandar2002@yahoo.fr