The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches

Abstract In modern corporate governance, external supervisors play an increasingly important role. This paper studies the choice of earnings management methods for UK listed companies in the London Stock Exchange from the perspective of media coverage and institutional investors. It uses a combina...

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Main Author: QIAO, LU
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Online Access:https://eprints.nottingham.ac.uk/54797/
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author QIAO, LU
author_facet QIAO, LU
author_sort QIAO, LU
building Nottingham Research Data Repository
collection Online Access
description Abstract In modern corporate governance, external supervisors play an increasingly important role. This paper studies the choice of earnings management methods for UK listed companies in the London Stock Exchange from the perspective of media coverage and institutional investors. It uses a combination of theoretical analysis and empirical analysis, and through the robustness tests, the following reliable conclusions are obtained. First, under the influence of media coverage, managers are more inclined to choose real earnings management. In addition, under the influence of institutional investors, managers are more likely to choose real earnings management. Moreover, this paper evaluates the simultaneous impact of media coverage and institutional investors on the choice of earnings management methods. The results show that media coverage has effect on the relationship between institutional investor and earnings management. However, institutional investors do not affect the relationship between media coverage and earnings management. Finally, the paper describes the shortcomings of this research. In addition, it proposes some suggestions for strengthening the supervision of external supervisors on earnings management behaviours. Moreover, recommendations are made to inform future study about the impact of external supervisors on earnings management. Keywords: Media coverage; Institutional investors’ shareholding ratio; Accrual-based earnings management; Real earnings management
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spelling nottingham-547972022-11-25T15:29:03Z https://eprints.nottingham.ac.uk/54797/ The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches QIAO, LU Abstract In modern corporate governance, external supervisors play an increasingly important role. This paper studies the choice of earnings management methods for UK listed companies in the London Stock Exchange from the perspective of media coverage and institutional investors. It uses a combination of theoretical analysis and empirical analysis, and through the robustness tests, the following reliable conclusions are obtained. First, under the influence of media coverage, managers are more inclined to choose real earnings management. In addition, under the influence of institutional investors, managers are more likely to choose real earnings management. Moreover, this paper evaluates the simultaneous impact of media coverage and institutional investors on the choice of earnings management methods. The results show that media coverage has effect on the relationship between institutional investor and earnings management. However, institutional investors do not affect the relationship between media coverage and earnings management. Finally, the paper describes the shortcomings of this research. In addition, it proposes some suggestions for strengthening the supervision of external supervisors on earnings management behaviours. Moreover, recommendations are made to inform future study about the impact of external supervisors on earnings management. Keywords: Media coverage; Institutional investors’ shareholding ratio; Accrual-based earnings management; Real earnings management 2018-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/54797/1/dissertation%20LU%20QIAO%204305285.pdf QIAO, LU (2018) The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches. [Dissertation (University of Nottingham only)]
spellingShingle QIAO, LU
The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches
title The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches
title_full The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches
title_fullStr The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches
title_full_unstemmed The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches
title_short The Influence of Media Coverage and Institutional Investors’ Shareholding Ratio on the Choice of Earnings Management Approaches
title_sort influence of media coverage and institutional investors’ shareholding ratio on the choice of earnings management approaches
url https://eprints.nottingham.ac.uk/54797/