The Impact of Earnings Management on the Value of Companies – The Role of Ownership Structure
The aim of our paper is to test whether there is a relationship between earnings management and the market value of companies with different ownership structures. Additionally, we examined whether ownership control determines earnings management. Our study was conducted on 632 non-financial companie...
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| Format: | Article |
| Language: | English |
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University of Warsaw
2022-11-01
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| Series: | Journal of Banking and Financial Economics |
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| Online Access: | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1012&context=jbfe |
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| _version_ | 1841564105297625088 |
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| author | Adam Adamczyk Sławomir Franek |
| author_facet | Adam Adamczyk Sławomir Franek |
| author_sort | Adam Adamczyk |
| collection | DOAJ |
| description | The aim of our paper is to test whether there is a relationship between earnings management and the market value of companies with different ownership structures. Additionally, we examined whether ownership control determines earnings management. Our study was conducted on 632 non-financial companies listed on the Warsaw Stock Exchange between 2013 and 2020. We have assessed panel data models showing that there is no relationship between earnings management and company value. However, there is a negative and statistically significant relationship for companies without a majority direct investor. We also showed that, despite the different impact of manipulation on company value, there are no statistically significant differences in earnings management between companies with different ownership structures. The originality of our study lies in conducting an analysis of earnings management taking into account the degree of ownership control. |
| format | Article |
| id | doaj-art-720f43aff72e4a8c801b79c2326cc250 |
| institution | Kabale University |
| issn | 2353-6845 |
| language | English |
| publishDate | 2022-11-01 |
| publisher | University of Warsaw |
| record_format | Article |
| series | Journal of Banking and Financial Economics |
| spelling | doaj-art-720f43aff72e4a8c801b79c2326cc2502025-01-02T23:16:33ZengUniversity of WarsawJournal of Banking and Financial Economics2353-68452022-11-0120222(18)607110.7172/2353-6845.jbfe.2022.2.5The Impact of Earnings Management on the Value of Companies – The Role of Ownership StructureAdam Adamczyk0https://orcid.org/0000-0002-0491-5502Sławomir Franek1https://orcid.org/0000-0002-9698-4918University of Szczecin, Institute of Economics and Finance, PolandUniversity of Szczecin, Institute of Economics and Finance, PolandThe aim of our paper is to test whether there is a relationship between earnings management and the market value of companies with different ownership structures. Additionally, we examined whether ownership control determines earnings management. Our study was conducted on 632 non-financial companies listed on the Warsaw Stock Exchange between 2013 and 2020. We have assessed panel data models showing that there is no relationship between earnings management and company value. However, there is a negative and statistically significant relationship for companies without a majority direct investor. We also showed that, despite the different impact of manipulation on company value, there are no statistically significant differences in earnings management between companies with different ownership structures. The originality of our study lies in conducting an analysis of earnings management taking into account the degree of ownership control.https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1012&context=jbfeearnings managementm-scoremarket valuecorporate finance |
| spellingShingle | Adam Adamczyk Sławomir Franek The Impact of Earnings Management on the Value of Companies – The Role of Ownership Structure Journal of Banking and Financial Economics earnings management m-score market value corporate finance |
| title | The Impact of Earnings Management on the Value of Companies – The Role of Ownership Structure |
| title_full | The Impact of Earnings Management on the Value of Companies – The Role of Ownership Structure |
| title_fullStr | The Impact of Earnings Management on the Value of Companies – The Role of Ownership Structure |
| title_full_unstemmed | The Impact of Earnings Management on the Value of Companies – The Role of Ownership Structure |
| title_short | The Impact of Earnings Management on the Value of Companies – The Role of Ownership Structure |
| title_sort | impact of earnings management on the value of companies the role of ownership structure |
| topic | earnings management m-score market value corporate finance |
| url | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1012&context=jbfe |
| work_keys_str_mv | AT adamadamczyk theimpactofearningsmanagementonthevalueofcompaniestheroleofownershipstructure AT sławomirfranek theimpactofearningsmanagementonthevalueofcompaniestheroleofownershipstructure AT adamadamczyk impactofearningsmanagementonthevalueofcompaniestheroleofownershipstructure AT sławomirfranek impactofearningsmanagementonthevalueofcompaniestheroleofownershipstructure |