scholarly journals An empirical study of the impact of changes in ownership structure on audit quality in an emerging stock market

2003 ◽  
Author(s):  
Fang ZHANG
Keyword(s):  
Stock Market ◽  
Empirical Study ◽  
Ownership Structure ◽  
Audit Quality ◽  
The Impact

Earnings management and audit quality at Damascus securities exchange: Does managerial ownership matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zukaa Mardnly ◽  
Zinab Badran ◽  
Sulaiman Mouselli
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Audit Quality ◽  
Emerging Market ◽  
Ordinary Least Squares ◽  
Managerial Ownership ◽  
External Audit ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to examine the individual and combined effect of managerial ownership and external audit quality, as two control mechanisms, on earnings management. Design/methodology/approach This study applies ordinary least squares estimates on fixed-time effects panel regression model to test the impact of the investigated variables on earnings management for the whole population of banks and insurance companies listed at Damascus Securities Exchange (DSE) during the period from 2011 to 2018. Findings The empirical evidence suggests a negative non-linear relationship between managerial ownership (as proxied by board of directors’ ownership) on earnings management. However, neither audit quality nor the simultaneous effect of the managerial ownership and audit quality (Big 4) affects earnings management. Research limitations/implications DSE is dominated by the financial sector and the number of observations is constrained by the recent establishment of DSE and the small number of firms listed at DSE. In addition, the non-availability of data on executive directors’ and foreign ownerships restrict our ability to uncover the impact of different dimensions of ownership structure on earnings management. Practical implications First, it stimulates investors to purchase stocks in financial firms that enjoy both high managerial ownership, as they seem enjoying higher earnings quality. Second, the findings encourage external auditors to consider the ownership structure when choosing their clients as the financial statements’ quality is affected by this structure. Third, researchers may need to consider the role of managerial ownership when analyzing the determinants of earnings management. Originality/value It fills the gap in the literature, as it investigates the impact of both managerial ownership and audit quality on earnings management in a special conflict context and in an unexplored emerging market of DSE. It suggests that managerial ownership exerts a significant role in controlling earnings management practices when loose regulatory environment combines conflict conditions. However, external audit quality fails to counter earnings management practices when conditions are fierce.

scholarly journals Impact of FDI and FII on the Indian Stock Market during Recent Recession Period: An Empirical Study

2013 ◽  
Vol 1 (4) ◽  
pp. 475-482
Author(s):  
Arindam Banerjee
Keyword(s):  
Stock Market ◽  
Empirical Study ◽  
Significant Influence ◽  
Import Substitution ◽  
Social Sector ◽  
Policy Changes ◽  
The World ◽  
Indian Stock Market ◽  
The Impact ◽  
Recession Period

The era 90‘s saw very significant policy changes introduced in the sphere of financial sector, foreign trade, public sector and social sector. The year 1991 witnessed the process of liberalization and globalization that hit the Indian economy and pushed our country to break open the ―Inward Looking‖ policy when the emphasis was accorded to protectionism and import substitution. Since 1991, India has proved to be a key player in the world. Ours country interaction has increased with many economies ties, political harmony, tourism trade and services more significantly in the area of investment. The present study was conducted by me with the aim to understand the impact of FDI and FII on Indian Stock Market (BSE and Nifty) during the recession period. It was found from the study that FDI had a significant influence on the Indian Stock market during recession while FII negatively influenced the Indian Stock Market.

scholarly journals The Role of Ownership Structure and Board Characteristics in Stock Market Liquidity

2021 ◽  
Vol 9 (4) ◽  
pp. 74
Author(s):  
Wajih Abbassi ◽  
Ahmed Imran Hunjra ◽  
Suha Mahmoud Alawi ◽  
Rashid Mehmood
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Ownership Structure ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Fixed Effect Model ◽  
Market Liquidity ◽  
Board Characteristics ◽  
Stock Market Liquidity ◽  
The Impact

Corporate governance plays a significant role in the value of shareholders and share prices, hence stock market liquidity is affected. Previous research has mainly focused on the issue in developed markets, whereas in developing countries there is a need to analyze the influence of corporate governance on stock market liquidity. Therefore, the present study aims to examine the impact of ownership structure and board characteristics on stock market liquidity of non-financial firms of South Asian countries such as Pakistan, Sri Lanka, Bangladesh, and India. The data in the study is collected from the DataStream for the 2011–2020 period. The study uses a fixed effect model for the analysis of the data and hypotheses testing and generalized method of moments (GMM) is used to check the robustness of the results. The findings of the study indicate that institutional ownership, board size, board independence, and CEO duality have a significant and positive impact on stock market liquidity, whereas managerial ownership has a significant and negative effect on stock market liquidity.

scholarly journals The impact of quality audit on the management of earnings

2015 ◽  
Vol 12 (3) ◽  
pp. 146-154 ◽  
Author(s):  
Kais Lassoued ◽  
Ibtissem Bacha
Keyword(s):  
Stock Market ◽  
Audit Quality ◽  
Essential Element ◽  
External Audit ◽  
Quality Audit ◽  
Opportunistic Management ◽  
The Impact

In a Tunisian context, the purpose of this research is to study the aspects related to the quality of external audit, relating to the opportunistic management of earnings. Indeed, we are interested in the aspect of handling the earnings as a means for the manager to achieve its objectives by publishing a result different from that which is achieved. Thus, the quality of external audit, as an essential element of the system of government of the companies, may be able to limit the process of accounting manipulation, and therefore to protect the interests of investors and creditors. Given these factors, there is a key question: To what extent can the quality of the external audit influence the opportunistic management of earnings in Tunisian businesses? In this research, our goal is to empirically test a sample of Tunisian companies listed on the stock market, the impact of audit quality on the opportunistic practice of earnings

HOW INTELLECTUAL CAPITAL AFFECTS A FIRM’S PERFORMANCE?

2012 ◽  
Vol 02 (08) ◽  
pp. 24-31
Author(s):  
Chokri ZEHRI ◽  
Asma ABDELBAKI ◽  
Najla BOUABDELLAH
Keyword(s):  
Firm Performance ◽  
Stock Market ◽  
Empirical Study ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Business Performance ◽  
The Impact ◽  
The Relationship

The impact of intellectual capital on firm performance is still poorly defined. In this paper, we try to find the relationship between intellectual capital and business performance from the standpoint of financial performance, the marketplace and economics. We conduct a study of the literature on this subject and we announce our research hypotheses. Our empirical study use a sample of 25 companies listed on the stock market in Tunisia. By using a panel’s data we perform the necessary tests for obtaining robust results. The main objective of this study is to determine an exact impact of intellectual capital on the performance of these companies.

The Impact of Investor Sentiment on Stock Market Liquidity: The Mediating Role of Investor Herding Behavior “An Empirical Study on the Egyptian Stock Exchange”

2021 ◽  
pp. 31-60
Author(s):  
A. H. El-Gayar ◽  
◽  
I. A. El-Hayes ◽  
S. Metawa ◽  
◽  
...  
Keyword(s):  
Stock Market ◽  
Empirical Study ◽  
Mutual Fund ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Theoretical Background ◽  
Market Liquidity ◽  
Indirect Impact ◽  
Stock Market Liquidity ◽  
The Impact

Behavioral finance is a recent approach in financial markets that have appeared because of the complexities long faced by the traditional or neoclassical finance theory. This paper investigates the influence of investor sentiment and herding behaviour on stock market liquidity using an empirical study on the Egyptian Stock Market. We examine the direct impact of Egyptian investor sentiment on the Egyptian Stock Market liquidity. As well as the indirect impact of the Egyptian investor sentiment on the Egyptian Stock Market liquidity through the Egyptian investor herding behaviour. Therefore, the major contribution is filling the gap of indirect sentiment-liquidity impact conflict. We use the monthly data of the EGX30 index from January 2004 up to December 2018 for building up investor sentiment index, investor herding behaviour, and stock market liquidity measures. Moreover, we are using two additional types of data (closed-end mutual fund discounts and the equity open-end mutual fund flows) that represent major measures which are used to build up investor sentiment index ranging through the same time-series of the previously mentioned period of this paper. Additionally, we use four control variables for stock market liquidity, namely market volatility, excess market return, term spread, and lag of the dependent variable, considering that the fourth variable is also used for investor herding behaviour. Our result shows that the investor sentiment index has both a direct and indirect impact on stock market liquidity. In addition, regarding event study analysis’ results, there are different signs of the direct and indirect impacts and different correlations between the research variables throughout the four different events that differ completely from the usual signs and correlations of the theoretical background.

scholarly journals The impact of ownership structure, financial distress on earnings management: The case of Vietnam

2020 ◽  
Author(s):  
Hung Dang Ngoc ◽  
Dung Tran Manh
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Financial Distress ◽  
Audit Quality ◽  
Foreign Ownership ◽  
State Ownership ◽  
Ownership Concentration ◽  
Regression Methods ◽  
Study Results ◽  
The Impact

The paper examines the effect of ownership structure on profit management in Vietnam. In this study, we explore how three components of ownership structure - the degree of ownership concentration of managers, foreign ownership ratio and state ownership ratio - affect earnings management. In addition, we also consider whether ownership structure affects profit management during financial constraints.<b> </b>We used REM, FEM, GLS, and GMM regression methods. The study results have shown that ownership structure with foreign ownership has a positive effect on earnings management, whereas one with a proportion of state ownership has a contradicting effect. While the degree of ownership concentration does not affect the profit management, in the context of financial restrictions, the ownership ratio has an impact on the management of earnings. Controllable variables in the model, such as firm size, financial leverage, growth rate, profitability and audit quality, all have an impact on earnings management. The results could, potentially, be the basis to help businesses in restricting earnings management behaviour.

scholarly journals The impact of ownership structure, financial distress on earnings management: The case of Vietnam

2020 ◽  
Author(s):  
Hung Dang Ngoc ◽  
Dung Tran Manh
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Financial Distress ◽  
Audit Quality ◽  
Foreign Ownership ◽  
State Ownership ◽  
Ownership Concentration ◽  
Regression Methods ◽  
Study Results ◽  
The Impact

The paper examines the effect of ownership structure on profit management in Vietnam. In this study, we explore how three components of ownership structure - the degree of ownership concentration of managers, foreign ownership ratio and state ownership ratio - affect earnings management. In addition, we also consider whether ownership structure affects profit management during financial constraints.<b> </b>We used REM, FEM, GLS, and GMM regression methods. The study results have shown that ownership structure with foreign ownership has a positive effect on earnings management, whereas one with a proportion of state ownership has a contradicting effect. While the degree of ownership concentration does not affect the profit management, in the context of financial restrictions, the ownership ratio has an impact on the management of earnings. Controllable variables in the model, such as firm size, financial leverage, growth rate, profitability and audit quality, all have an impact on earnings management. The results could, potentially, be the basis to help businesses in restricting earnings management behaviour.

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