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investors behavior, earnings management and governance

International Journal of Finance & Banking Studies

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Field Value
 
Title investors behavior, earnings management and governance
 
Creator Khzouri, Afraa; ESCT Lamanouba university Tunisia
Neffati, Amira
 
Subject —
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Description The aim of this paper is to study the relationship between earnings management, governance and investors behavior, since this latter can inform about the nature of earnings management and can be considered as a governance mechanism to reduce accounts manipulations. On the basis of a sample of 700 American firms for the period of 1996-2006, our empirical results show that investors who take short positions, are able to interpret the information detected from the earnings management. The activity of these investors may be considered as an indicator of the quality of the governance structure and the presence and nature of earnings management. The under-reaction of investors to information leads to short-term sale of the shares of poorly governed firms and characterized by an opportunistic earnings management and to invest in firms well-governed and characterized by an informational earnings management therefore an abnormal profit can be realized.
 
Publisher SSBFNET
 
Contributor —
 
Date 2014-07-16
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/346
 
Source International Journal of Finance & Banking Studies (ISSN: 2147- 4486); Vol 3, No 3 (2014): July; 53-63
2147-4486
 
Language eng
 
Relation http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/346/308