The Governance Impact of a Changing Investor Landscape

Journal of International Business Studies 48(2): 195–221

Posted: 10 Aug 2017

See all articles by Ruth V. Aguilera

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy

Kurt A. Desender

Universidad Carlos III de Madrid

Mónica LópezPuertas-Lamy

Universidad Carlos III de Madrid

Jun Ho Lee

University of Illinois at Urbana-Champaign - College of Business

Date Written: February 9, 2017

Abstract

Within the backdrop of comparative corporate governance research, we draw on the managerial reporting and impression management literatures to examine how the type, level, and nature of foreign shareholders, infused with their own governance logic, influence initial managerial earnings optimism and how foreign ownership shapes earnings guidance in a stakeholder-oriented setting. Drawing on Japanese data, and addressing endogeneity concerns, our results show that under the presence of foreign owners, managers are more optimistic in their initial earnings forecasts, but that in subsequent revisions they are more likely to provide timely adjustments of their earnings forecast and avoid making last-minute adjustments. This research illustrates how foreign practices travel across borders and contributes to understanding triggers to governance and strategic changes.

Keywords: comparative corporate governance, foreign ownership, management reporting, comparative accounting systems and practices, institutionalism

Suggested Citation

Aguilera, Ruth V. and Desender, Kurt A. and LópezPuertas-Lamy, Mónica and Lee, Jun Ho, The Governance Impact of a Changing Investor Landscape (February 9, 2017). Journal of International Business Studies 48(2): 195–221 . Available at SSRN: https://ssrn.com/abstract=3015749

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy ( email )

Boston, MA 02115
United States

Kurt A. Desender (Contact Author)

Universidad Carlos III de Madrid ( email )

Calle de Madrid, 123
Getafe, 28903
Spain

Mónica LópezPuertas-Lamy

Universidad Carlos III de Madrid ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

Jun Ho Lee

University of Illinois at Urbana-Champaign - College of Business ( email )

Champaign, IL 61820
United States

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