Conflict or alignment? The role of return-oriented foreign shareholders and domestic relational shareholders in mitigating earnings management

• Main Authors: YOSHIKAWA, Toru, REQUEJO, Ignacio P., COLPAN, Asli, UCHIDA, Daisuke
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Earnings management; Relational governance; Japan; Corporate Finance; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6905; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7904/viewcontent/14761270211069609_av.pdf
• Institution: Singapore Management University

This study investigates the effects of foreign return-oriented shareholders and domestic relational shareholders of Japanese companies on the earnings management behavior of their invested firms when stock option pay is adopted. We theorize that foreign shareholders seek short-term returns and do no...