The Empirical Study About Heterogeneity Of Institutional Investor And Accrual And Real Earnings Management

Earnings management has been popular issues in theory and practice, Listed companies use a variety of means to implement real earnings management for a lot of reasons, accruals and earnings management damage the authenticity and reliability of accounting information, which will damage the interests of investors and interfere the normal operation of capital market. By using its advantage signed by strong profession and information, institutional investors can continuous track and analyze the listed companies to find out the problem of listed companies. Institutional investors are the main participants in the capital market, and institutional ownership is an effective corporate governance mechanism. Institutional investors play an important role in the management of the listing Corporation. Studying the influence of institutional investors on real earnings management has vital significance. However, many scholars regard institutional investors as homogeneous institutional investors when they study the relationship between institutional investors and real earnings management. In addition, the research of institutional investors and real earnings management moderate effect of potential factors. Therefore, thisarticle will study the different influence of institutional investors on accruals and real earnings management from the perspective of heterogeneity of institutional investors.Based on A share market enterprise from 2008-2014, this paper make an empirical study of the relationship between heterogeneity of institutional investors and accrual and real earnings management from the scale holding of institutional investors, holding stability and independence, Applying simultaneous equations controlling endogenous, using two-stage least squares regression method to analyze, the results show that:(1)Large and small institutional investors had significantly positive effect on the negative accruals earnings management, while large institutional investors had stronger significant correlations with negative accrual earnings management, Large and small institutional investors had no significantly effect on the positive accruals earnings management; In the aspect of the inhibitory effect on the negative and positive accrual earnings management, stable institutional investors and transactional institutional investors have no differences; Independent institutional investors had significantly positive effect on the negative accruals earnings management, independent institutional investors had no significantly effect on the positive accruals earnings management; Dependent institutional investors had no significantly effect on the negative and positive accruals earnings management;(2)Large institutional investors had significantly negative effect on the real earnings management, small institutional investors had no significantly effect on the real earnings management; Stable institutional investors has better efficiency than transactional institutional investors, it has great inhibitory effect on the positive accruals earnings management; Independent institutional investors had significantly negative effect on the real earnings management, while dependent institutional investors had no significantly effect on the real earnings management.