Work

Employee share ownership and the nature of earnings management

Year: 2024

Type: article

Abstract: Using a sample of French listed companies, this article investigates whether employee share ownership (ESO) plays a role on the nature of earnings management (EM). Moreover, we aim to explore the documented ambiguous effects of EM and ESO on information asymmetry. Using an agency theory approach, we first observe that, in general, French companies use EM opportunistically rather than for informative purposes. Then, we find that ESO mitigates EM by 1) reducing the overall EM level and 2) making EM less opportunistic and more beneficial for the company.

Source: International Review of Applied Economics

DOI: 10.1080/02692171.2024.2406345

Authors: Joseph Abdelnour, Nicolas Aubert, Domenico Campa

Institutions: ESSCA School of Management, Aix-Marseille Université, International University of Monaco

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W4402732406

FWCI: 1.008

Cites: 87

Cited by: 1

Related to: 10