Top Institutional Investors and Accounting Comparability

Date

2020-08

Journal Title

Journal ISSN

Volume Title

Publisher

Abstract

In this study, I hypothesize that two firms that have the same top institutional investor (i.e., institutional investor with the largest shareholding) have higher accounting comparability than other firm pairs. I find evidence consistent with this hypothesis. In addition, firm-pairs whose top institutional investors are monitoring institutions (regardless of whether they are the same institutions) exhibit greater comparability than other firm-pairs whose top institutional investors are non-monitoring institutions. Collectively, these findings corroborate the important role top institutional investors play in influencing firms’ financial reporting decisions.

Description

Keywords

Institutional Investors, Accounting Comparability

Citation