The Influence Study Of Institutional Investors To Accounting Anomaly

Sloan(1996) established the concept of accrual anomaly. This paper firstly researches accrual anomaly of China by using the sample of China mainland listed companies from year 2009 to 2012. To maintain the complete research framework of accrual anomaly. We study the persistence of accounting earnings and its components. And then do the single variable regression between accrued profit and Cumulative Abnormal Return, which shows that the accrued profit and Cumulative Abnormal Return presented significantly negative correlation. And we also find the same correlation between the two factors after controlling the affection of other financial variable such as BM, Size, β. At last, we do the study by constructing arbitrage portfolio. The results showed that Cumulative Abnormal Return can be obtained in the total. These methods do the test of the existence of Accounting Anomaly. The result shows that Accounting Anomaly do exist in our country during the study period.We do the further study combine the institutional investors’ information resources as well as its double agent identity. This paper set out to study Accounting Anomaly from the cognition of institutional investors on accounting information(the higher institutions stake, the more information contained in accounting income can be identified) and the enthusiasm of different types of institutional investors to supervise the company. Results show that both through sample group inspection or do the item by introducing multiple regression testing, the higher the institutional investor shareholding, the smaller of the extent of Accounting Anomaly.At the same time, this paper further classified the institutional investors as active institutional investors and passive institutional investors. The empirical results show that the companies which hold in active institutional investors has less Accounting Anomaly less than passive institutional investors. For fund and QFII, which meet small pressure from state intervention and has internal salary incentive system, can through the supervision and management behavior to relieve the accounting anomaly. However, the others institutional investors, including securities, insurance, pension fund, for the large government intervention they face, has the less motivation to monitor management behavior. Therefore, passive institutional investors take on a much greater role in easing Accounting Anomaly.