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Earnings Management: Do large investors care? Jimmy
Senteza, Joyce Njoroge and Susan Gill* *
Drake University, Drake University, and Washington State University,
respectively Abstract Institutional
investors seem to be able to detect the existence and decipher the direction
of corporate earnings management efforts before the public release of
earnings information. The finding is based on a study of US corporate
financial statement reports and quarterly institutional investor ownership
information between 1990 and 2000. Corporate efforts to manage earnings are
responsible for the corporate meltdown occurring over the last few years. As
the investment community seeks answers to what might have been overlooked in
firms’ financial statements, little is known about institutional investors’
ability to discern earnings abuses. Copyright ©2005 Financial Decisions Associates — All Rights Reserved |
