The Relationship Between Earnings Management and Insider Ownership of Firms Quoted at the Nse
Abstract
This study investigates the relationship between earnings management and the level of
insider ownership for companies quoted at the Nairobi Stock Exchange. The study is a
descriptive correlation analysis. By applying the General Moment of Methods and
multiple regression analysis on a sample for fifteen companies quoted at the NSE
between 2006 and 2010, Analyzing the data for the five years, earnings management is
found to have a negative relationship towards insider investments as compared to other
components of company ownership namely; institutional and external ownership. The
relationship is however insignificant meaning that insider ownership does not have a
significant influence on management behavior to manipulate reported earnings of quoted
firms
Publisher
University of Nairobi
Subject
The relationship between earnings management and insider ownership of firms quoted at the NSERights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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