The Relationship between Ownership Concentration and Earnings Management- Evidence from Mongolian Listed Firms

Abstract

Research purpose is to investigate the relationship between ownership concentration and earnings management in Mongolian listed firms in 2012-2018. During soviet era, Mongolia’s economy was predominated by state-controlled, wide-spread inefficiencies, which reduced investor confidence. Transition to market economy brought several types of ownership in companies. Therefore, the study focuses on ownership concentration.The ownership is measured by percentage of shareholder's shares.Proxy of earnings management is defined by discretionary accruals. A total of 122 Mongolian listed firms are chosen as a study sample and found that controlling ownership and earnings management have positive and significant relation.