Impact of Ownership Structure on Earnings Management: Evidence from Pakistan
DOI:
https://doi.org/10.47067/ramss.v1i1.34Keywords:
Pakistan Stock Exchange, Earnings Management, Institutional Ownership, Foreign OwnershipAbstract
The aim of the current study is to examine the impact of ownership structure on earnings management by using three aspects of ownership i.e. managerial, institutional and foreign. The sample consists of non-financial firms included in KSE-100 index of Pakistan Stock Exchange (PSX). The modified Jones model is used to calculate earnings management and random effect model regression is applied to test the impact of ownership structure on earnings management. The findings reveal that firms with high managerial and foreign ownership, engage more in earnings management. However, analysis reveal insignificant relationship between institutional ownership and earnings management.
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