Institutional ownership and conservatism

Journal of Accounting and Economics

Volumn 53, Issue 1-2, 2012, Pages 98-114

  Ramalingegowda, Santhosh ^a   Yu, Yong ^b  

^a UNIVERSITY OF GEORGIA   (United States)

^b UNIVERSITY OF TEXAS AT AUSTIN   (United States)

Author keywords

Accounting conservatism; Institutional investors; Monitoring incentives

Indexed keywords

EID: 84857060118     PISSN: 01654101     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jacceco.2011.06.004     Document Type: Article

References (58)

1. Ahmed A.S., Duellman S. Evidence on the role of accounting conservatism in corporate governance. Journal of Accounting and Economics 2007, 43:411-437.
2. Ayers B., Freeman R. Evidence that analyst following and institutional ownership accelerate the pricing of future earnings. Review of Accounting Studies 2003, 8:47-67.
3. Ball R. Infrastructure requirements for an economically efficient system of public financial reporting and disclosure. Brookings-Wharton Papers on Financial Services 2001, 127-169.
4. Ball, R., Kothari, S.P., Nikolaev, V., 2010. Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism. Working Paper.
5. Ball, R., Kothari, S.P., Nikolaev, V., 2011. On Estimating Conditional Conservatism. Working Paper.
6. Ball R., Robin A., Wu J. Incentives versus standards: properties of accounting income in four east asian countries. Journal of Accounting and Economics 2003, 36:235-270.
7. Ball R., Shivakumar L. Earnings quality in UK private firms: comparative loss recognition timeliness. Journal of Accounting and Economics 2005, 39:83-128.
8. Barber B., Lee Y., Liu Y., Odean T. Just how much do individual investors lose by trading?. Review of Financial Studies 2009, 22:609-632.
9. Barber B., Odean T. Common stock investment performance of individual investors. Journal of Finance 2000, 55:773-806.
10. Barber B., Odean T. All that glitters: the effects of attention and news on the buying behavior of individual and institutional investors. Review of Financial Studies 2008, 21:785-818.
11. Bartov E., Radhakrishnan S., Krinsky I. Investor sophistication and patterns in stock returns after earnings announcements. The Accounting Review 2000, 75:43-63.
12. Basu S. The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics 1997, 25:1-34.
13. Brickley J., Lease R., Smith C. Ownership structure and voting on antitakeover amendments. Journal of Financial Economics 1988, 20:267-291.
14. Bushee B. The influence of institutional investors on myopic R&D investment behavior. The Accounting Review 1998, 13:305-333.
15. Bushee B. Do institutional investors prefer near term earnings over long-run value?. Contemporary Accounting Research 2001, 18:207-246.
16. Bushee B., Noe C. Corporate disclosure practices, institutional investors, and stock return volatility. Journal of Accounting Research 2000, 38:171-202.
17. Carleton W., Nelson J., Weisbach M. The influence of institutions on corporate governance through private negotiations: evidence from TIAA-CREF. Journal of Finance 1998, 53:1335-1362.
18. Chakravarty S. Stealth trading: which traders' trades move prices. Journal of Financial Economics 2001, 61:289-307.
19. Chan L., Lakonishok J. The behavior of stock prices around institutional trades. Journal of Finance 1995, 50:1147-1174.
20. Chung H., Wynn J. Managerial legal liability coverage and earnings conservatism. Journal of Accounting and Economics 2008, 46:135-153.
21. Chen X., Harford J., Li K. Monitoring: which institutions matter?. Journal of Financial Economics 2007, 86:279-305.
22. Cook R.D. Detection of influential observations in linear regression. Technometrics 1977, 19:15-18.
23. Dietrich J., Muller K., Riedl J. Asymmetric timeliness tests of accounting conservatism. Review of Accounting Studies 2007, 12:95-124.
24. Fama E., MacBeth J. Risk, return, and equilibrium: empirical tests. Journal of Political Economy 1973, 81:607-636.
25. Francis J., Martin X. Acquisition profitability and timely loss recognition. Journal of Accounting and Economics 2010, 49:161-178.
26. Francis J., Philbrick D., Schipper K. Shareholder litigation and corporate disclosures. Journal of Accounting Research 1994, 32:137-164.
27. Gaspar J., Massa M., Matos P. Shareholder investment horizons and the market for corporate control. Journal of Financial Economics 2005, 76:135-165.
28. Givoly D., Hayn C. The changing time-series properties of earnings, cash flows and accruals: has financial reporting become more conservative?. Journal of Accounting and Economics 2000, 29:287-320.
29. Givoly D., Hayn C., Natarajan A. Measuring reporting conservatism. The Accounting Review 2007, 82:65-106.
30. Gompers P., Metrick A. Institutional investors and equity prices. Quarterly Journal of Economics 2001, 116:229-259.
31. Gompers P., Ishii J., Metrick A. Corporate governance and equity prices. The Quarterly Journal of Economics 2003, 166:229-259.
32. Grinblatt M., Keloharju M. The investment behavior and performance of various investor types: a study of Finland's unique data set. Journal of Financial Economics 2000, 55:43-67.
33. Hand J. A test of the extended functional fixation hypothesis. The Accounting Review 1990, 65:740-763.
34. Hartzell J., Starks L. Institutional investors and executive compensation. Journal of Finance 2003, 58:2351-2374.
35. Hermalin B., Weisbach M. The effects of board compensation and direct incentives on firm performance. Financial Management 1991, 20:101-112.
36. Holmstrom B. Moral hazard and observability. Bell Journal of Economics 1979, 10:74-91.
37. Holthausen R., Watts R. The relevance of the value-relevance literature for financial accounting standard setting. Journal of Accounting and Economics 2001, 31:3-75.
38. Ke B., Petroni K., Safieddine A. Ownership concentration and sensitivity of executive pay to accounting performance measures: evidence from publicly and privately-owned insurance companies. Journal of Accounting and Economics 1999, 28:185-209.
39. Ke B., Petroni K. How informed are actively trading institutional investors? Evidence from their trading behavior before a break in a string of consecutive earnings increases. Journal of Accounting Research 2004, 42:895-927.
40. Ke B., Petroni K., Yu Y. The effect of regulation FD on transient institutional investor's trading behavior. Journal of Accounting Research 2008, 46:853-883.
41. Khan M., Watts R. Estimation and validation of a firm-year measure of accounting conservatism. Journal of Accounting and Economics 2009, 48:132-150.
42. LaFond R., Roychowdhury S. Managerial ownership and accounting conservatism. Journal of Accounting Research 2008, 46:101-135.
43. LaFond R., Watts R. The information role of conservatism. The Accounting Review 2008, 83:447-478.
44. Morck R., Shleifer A., Vishny R. Management ownership and market valuation: an empirical analysis. Journal of Financial Economics 1988, 20:293-315.
45. Newey R., West K. A simple, positive semidefinite heteroskedasticity and autocorrelation consistent covariance matrix. Econometrica 1987, 55:703-708.
46. Nichols C., Wahlen J., Wieland M. Publicly traded versus privately held: implications for conditional conservatism in bank accounting. Review of Accounting Studies 2008, 14:88-122.
47. Odean T. Do investors trade too much?. American Economic Review 1999, 89:1279-1298.
48. Patatoukas, P., Thomas, J. More evidence of bias in the differential timeliness measure of conditional conservatism. The Accounting Review, forthcoming.
49. Petersen M.A. Estimating standard errors in finance panel data sets: comparing approaches. Review of Financial Studies 2009, 22:435-480.
50. Prendergast C. The tenuous trade-off of risk and incentives. Journal of Political Economy 2002, 110:1071-1102.
51. Roychowdhury S., Watts R. Asymmetric timeliness of earnings, market-to-book and conservatism in financial reporting. Journal of Accounting and Economics 2007, 44:2-31.
52. Ryan S. Identifying conditional conservatism. European Accounting Review 2006, 15:511-525.
53. Shleifer A., Vishny R. Large shareholders and corporate control. Journal of Political Economy 1986, 94:461-488.
54. Sias R., Starks L., Titman S. Changes in institutional ownership and stock returns: assessment and methodology. Journal of Business 2006, 79:2869-2910.
55. Smith D., Watts R. The investment opportunity set and corporate financing, dividend and compensation policies. Journal of Financial Economics 1992, 32:263-292.
56. Walther B. Investor sophistication and market earnings expectation. Journal of Accounting Research 1997, 157-179.
57. Watts R. Conservatism in accounting. Part I: explanations and implications. Accounting Horizons 2003, 17:207-221.
58. Yan X., Zhang Z. Institutional investors and equity returns: are short-term institutions better informed?. Review of Financial Studies 2009, 22:893-924.