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07-06-2024 | Review Paper

The impact of accounting practices on financial sustainability: A study of external block-holders and institutional ownership

Authors: Yufei Cao, Abdulmajeed Mawhan H. Alfadhli, Mohammad Jaradat, Ramona Lile, Mihaela Gadoiu, Mariana Banuta, Daniela Mihai, Malik Shahzad Shabbir

Published in: Review of Managerial Science | Issue 7/2024

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Abstract

This study intends to investigate the impact of the accounting number game on financial sustainability. It investigates the role of external block-holders and institutional ownership on the association between accounting number game and financial sustainability. This study uses a sample of listed companies in the Pakistan Stock Exchange (PSX). Logit analysis is used to see the influence of accounting numbers’ games on financial sustainability. Additionally, the moderating impact of external block-holders and institutional ownership on the association between accounting numbers’ game and financial sustainability is examined. This study documents the novel evidence that accounting numbers games worsen the financial sustainability of companies and it can be improved by limiting the earnings management practices of managers through “efficient-market hypothesis”.

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Title: The impact of accounting practices on financial sustainability: A study of external block-holders and institutional ownership
Authors: Yufei Cao
Abdulmajeed Mawhan H. Alfadhli
Mohammad Jaradat
Ramona Lile
Mihaela Gadoiu
Mariana Banuta
Daniela Mihai
Malik Shahzad Shabbir
Publication date: 07-06-2024
Publisher: Springer Berlin Heidelberg
Published in: Review of Managerial Science / Issue 7/2024
Print ISSN: 1863-6683
Electronic ISSN: 1863-6691
DOI: https://doi.org/10.1007/s11846-024-00761-1

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