Institutional investors and conservative financial reporting: evidence from China

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• 作者：Yue Chen ; Lingxiang Li ; Haizhi Wang ; Peng Wang
• 关键词：Institutional holdings ; Investment horizons ; Accounting conservatism ; China ; G2 ; G3 ; M41
• 刊名：Eurasian Economic Review
• 出版年：2015
• 出版时间：June 2015
• 年：2015
• 卷：5
• 期：1
• 页码：161-178
• 全文大小：
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• 作者单位：Yue Chen (1)
  Lingxiang Li (2)
  Haizhi Wang (1)
  Peng Wang (3)
  
  1. Stuart School of Business, Illinois Institute of Technology, 565 W. Adams Street, Chicago, IL, 60661, USA
  2. School of Business, State University of New York-Old Westbury, 223 Store Hill Rd, Old Westbury, NY, 11568, USA
  3. Lecturer in Accounting/Financial Management, Southampton Business School, University of Southampton, Southampton, UK
  
• 刊物类别：Economics general;
• 刊物主题：Economics general;
• 出版者：Springer International Publishing
• ISSN：2147-429X

文摘

Using a sample of listed firms in China from 2008 to 2011, we investigate the relation between institutional ownership and firm accounting conservatism. We find that higher level of equity ownership by institutional investors is associated with less conservative financial reporting. We also document that firms with long-horizon institutions engage in less conservative financial reporting. We further test the effects of interaction terms between institutional holdings and investor investment horizons, and our results reveals that with higher level of institutional holdings and more long-term institutional investors, firms are more likely to engage in less conservative reporting policy. Our evidence is contrary to the findings based on US firms, but in line with the price manipulation motive by institutional investors due to short-sales constraints in China. Keywords Institutional holdings Investment horizons Accounting conservatism China