Managerial ownership, corporate governance and earnings quality: the role of institutional ownership as moderating variable

Muhammad Khafid, Sandy Arief

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

The purposes of this study are first, to analyse the influence of corporate governance structure and ownership structure on earnings quality and second, to examine the role of institutional ownership on the causal relationship between managerial ownership and market outcomes. The sample of the study was 242 companies from 430 companies listed on the Indonesia Stock Exchange (IDX) using purposive sampling technique. Data analysis technique used moderating variables regression with institutional ownership. The results showed board composition of directors and managerial ownership significantly affected market outcomes. The number of audit committees did not affect significantly
market outcomes while institutional ownership did not affect significantly the profit but as a moderating variable, institutional ownership significantly improved the effects of managerial ownership on earnings quality. Accounting-based profit quality is reflected by the solid profit persistence and predictability.
Original languageEnglish
Pages (from-to)241-254
Number of pages14
JournalPertanika Journal of Social Science and Humanities
Volume25
Issue number3
Publication statusPublished - 2017
Externally publishedYes

Keywords

  • Corporate governance
  • earnings quality
  • institutional ownership
  • managerial ownership

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