TITLE:
Ownership Structure and Accounting Conservatism: A Literature Review
AUTHORS:
Fangfang Song
KEYWORDS:
Ownership Concentration, Equity Restriction Ratio, Institutional Investors, Accounting Conservatism
JOURNAL NAME:
Modern Economy,
Vol.6 No.4,
April
20,
2015
ABSTRACT: With the rapid
development of modern corporate theory, the divergence of interests of shareholders
and management began to increase, leading to more and more conflicts between the
shareholders and managers. The agency problem hindered the company and
shareholders to maximize their value. A reasonable ownership structure and
sound accounting information can alleviate the problems caused by the agency
conflict. Therefore, many scholars began to research the relationship between
ownership structure and accounting conservatism. This article summarizes the
relevant literature mainly from the ownership concentration, the degree of
equity checks and balances, institutional ownership and state ownership of
these four aspects, in order to provide theoretical support for the follow-up
study.