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An Empirical Study on the Relationship Between Foreign Investors and Earnings Quality

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  • Yohan An

Abstract

This study examines the impact of foreign investors on earnings quality in emerging capital market using Korean manufacturing firms¡¯ panel data set, regarding competing for international investment and business opportunities during the period 2000 to 2012. This paper tests earnings quality using four proxies based on the International Financial Reporting Standards: 1) persistence, 2) value relevance, 3) conservatism, and 4) accruals quality. This research finds foreign investor is positively associated with only user needs earnings quality; persistence and value relevance. This result shows that the positive impact of foreign investor on earnings quality is evident but limited.

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  • Yohan An, 2019. "An Empirical Study on the Relationship Between Foreign Investors and Earnings Quality," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 99-107, December.
    • Handle: RePEc:jfr:rwe111:v:10:y:2019:i:3:p:99-107
    DOI: 10.5430/rwe.v10n3p99
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    References listed on IDEAS

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    Cited by:

    1. Bo Lin & Liu Yuan & Bo Lu, 2023. "How Does Trade Policy Uncertainty Affect Supply Chain Efficiency: A Case Study of Listed Companies of Chinese Port Industry," Sustainability, MDPI, vol. 15(9), pages 1-13, April.
    2. Sang Ho Kim & Yohan An & Prabhu Udawatte, 2020. "Does Foreign Ownership Restrict Earnings Management? The Case of China," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 16(1), pages 63-86.

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