Fund holdings and real earnings management: An empirical analysis of the Chinese A-share market

Fund holdings and real earnings management: An empirical analysis of the Chinese A-share market

Blog Article

Drawing on data from Chinese A-share listed companies spanning 2016 to 2023, this study investigates how fund WILD FLOWER holdings influence real earnings management (REM) practices.The results indicate that: (1) There is a significant negative correlation between fund holdings and REM, suggesting strong external oversight; (2) The governance effect of fund holdings is more pronounced in non-state-owned firms and those with a balanced equity structure, underscoring the critical roles of ownership nature and equity distribution; (3) High-quality internal controls also exhibit a significant negative correlation with REM, serving as a mediating factor between fund holdings and earnings management.These findings deepen our understanding of CELERY SEED EXTRACT how institutional investors contribute to corporate governance and enhance internal control systems.