"Ownership Structure and Managerial Discretion Relationship. "

Abstract

This study assesses the impact of three different types of ownership structure (family, institutional, financial, and external blockholders) in the quality of financial reporting information (under the accrued basis on the financial statements), a variable known as "earnings management" on to managerial discretion (as measured by the model of Jones (1991)). We test the data from 89 share issuers or listed Mexican companies for the period 2005-2011, performing econometric analysis considering fixed effects panel data and annual frequency. Negative signs obtained on the relationship between family ownership structure and managerial discretion, and in the relationship between institutional-ownership structure.