Blockholder Characteristics and Earnings Quality

Authors

  • Aslihan Gizem Korkmaz Dominican University of California
  • Qingzhong Ma California State University, Chico
  • Haigang Zhou Cleveland State University

Keywords:

Accounting, Finance, Blockholder

Abstract

This study focuses on the impact of blockholder characteristics on earnings quality. Most of the studies in literature make the implicit assumption that blockholders are a homogeneous group. This study is one of few studies that acknowledges the heterogeneity of blockholders and attempts to understand the unexplained proportion of blockholder heterogeneity. Earnings quality is calculated using the modified Dechow and Dichev (2002) model with fixed effects (FDD model) by Lee and Masulis (2009), and it is regressed on various blockholder characteristics. The results show that earnings quality is lower for firms with market-driven and multilateral blockholders.

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Published

2017-06-01

How to Cite

Korkmaz, A. G., Ma, Q., & Zhou, H. (2017). Blockholder Characteristics and Earnings Quality. Journal of Accounting and Finance, 17(3). Retrieved from https://articlegateway.com/index.php/JAF/article/view/957

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Section

Articles