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Institutional Investors Heterogeneity And Earnings Management: The R&D Investment Strategy
Iskandar REBAI
Pages - 122 - 131     |    Revised - 31-01-2011     |    Published - 08-02-2011
Volume - 1   Issue - 3    |    Publication Date - January / February  Table of Contents
Institutional Investors, Earnings management, R&D
This study examines the association between different institutional investors\' ownership and earnings management practice through R&D expenditures. It investigates this relationship for a sample of 123 US firms. We examine also the effect of institutional ownership on earnings management of firms having different information environment (S&P 500 versus non S&P 500). Results show that while investment funds exacerbate earnings management by encouraging managers to limit R & D expenditures, pension funds and banks follow passive behaviors. Moreover, the hypothesis of the relevance of the environment information in the explanation of the institutional investors’ behavior seems to be important in our case.
CITED BY (6)  
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Dr. Iskandar REBAI
FSEG SFAX - Tunisia