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Large shareholder heterogeneity

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Date Issued:
2011
Summary:
I investigate the association between large shareholder heterogeneity and firms' accounting quality and information asymmetry. Specifically, I construct three measures of ownership heterogeneity based on the type, size, and monitoring aggressiveness of large shareholders present in a firm. Applying these three measures of heterogeneity, I examine whether large shareholder heterogeneity is associated with the variation in firms' accounting quality and information asymmetry. I also examine new block formations to provide evidence on the consequences of large shareholder investment on firms' accounting quality and information asymmetry. I find that the monitoring aggressiveness of large shareholders is positively associated with firms' accounting quality and information asymmetry. These findings suggest that large aggressive shareholders constrain earnings management, but contribute to firms' overall information asymmetry. Further, using new blockholder data, I find that investments by large aggressive shareholders are positively associated with firms' accounting quality and firms' information asymmetry in the post investment period. This finding provides additional support to my hypotheses that large shareholders play an important role in firms' accounting quality and information asymmetry.
Title: Large shareholder heterogeneity: the effect on firms' accounting quality and information asymmetry.
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Name(s): Trainor, Joseph E.
College of Business
School of Accounting
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Date Issued: 2011
Publisher: Florida Atlantic University
Physical Form: electronic
Extent: xi, 116 p. : ill.
Language(s): English
Summary: I investigate the association between large shareholder heterogeneity and firms' accounting quality and information asymmetry. Specifically, I construct three measures of ownership heterogeneity based on the type, size, and monitoring aggressiveness of large shareholders present in a firm. Applying these three measures of heterogeneity, I examine whether large shareholder heterogeneity is associated with the variation in firms' accounting quality and information asymmetry. I also examine new block formations to provide evidence on the consequences of large shareholder investment on firms' accounting quality and information asymmetry. I find that the monitoring aggressiveness of large shareholders is positively associated with firms' accounting quality and information asymmetry. These findings suggest that large aggressive shareholders constrain earnings management, but contribute to firms' overall information asymmetry. Further, using new blockholder data, I find that investments by large aggressive shareholders are positively associated with firms' accounting quality and firms' information asymmetry in the post investment period. This finding provides additional support to my hypotheses that large shareholders play an important role in firms' accounting quality and information asymmetry.
Identifier: 760184222 (oclc), 3322515 (digitool), FADT3322515 (IID), fau:3743 (fedora)
Note(s): by Joseph E. Trainor.
Thesis (Ph.D.)--Florida Atlantic University, 2011.
Includes bibliography.
Electronic reproduction. Boca Raton, Fla., 2011. Mode of access: World Wide Web.
Subject(s): Investment analysis
Financial services industry -- United States
Organizational effectiveness -- Measurement
Total quality management
Persistent Link to This Record: http://purl.flvc.org/FAU/3322515
Use and Reproduction: http://rightsstatements.org/vocab/InC/1.0/
Host Institution: FAU