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Is conservative reporting attractive to foreign institutional investors? Evidence from an emerging market

Yildiz, Y., Karan, M.B., Ozkan, A. (2019) Is conservative reporting attractive to foreign institutional investors? Evidence from an emerging market. European Journal of Finance, 25 (12). pp. 1099-1121. ISSN 1351-847X. (doi:10.1080/1351847X.2018.1561481) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:97228)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL:
https://dx.doi.org/10.1080/1351847X.2018.1561481

Abstract

This study investigates the relation between conservative reporting and foreign institutional ownership using a unique dataset of firms in Turkey. In doing so, we distinguish between foreign funds and corporations. Contrary to prior findings, our analysis shows that conservative reporting is not necessarily a desirable accounting feature for foreign institutional investors. We also find that the interplay between conservative reporting and ownership is significantly different between foreign funds and corporations. The estimated negative relation holds only for foreign funds. Further analysis reveals that foreign funds do not find conservative reporting desirable in low-asymmetric information firms and reduce ownership with greater accounting conservatism in such firms. The analysis sheds significant lights on the relevance of conservative reporting in alleviating the negative consequences of asymmetric information.

Item Type: Article
DOI/Identification number: 10.1080/1351847X.2018.1561481
Uncontrolled keywords: conservative reporting, emerging market, Foreign institutional investors, information asymmetry
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Funders: University of Huddersfield (https://ror.org/05t1h8f27)
Depositing User: Aydin Ozkan
Date Deposited: 04 Oct 2022 11:22 UTC
Last Modified: 04 Mar 2024 19:30 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/97228 (The current URI for this page, for reference purposes)

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