UTJECAJ VLASNIČKE STRUKTURE NA RAČUNOVODSTVENI KONZERVATIZAM I UPRAVLJANJE ZARADAMA
THE INFLUENCE OF OWNERSHIP STRUCTURE ON ACCOUNTING CONSERVATISM AND EARNINGS MANAGEMENT

Summary/Abstract: This paper examines relations that exist between structure of the ownership, accounting conservatism and manipulation of earnings. As one of the forms of manipulative accounting, the management of earnings increases the risk of investing by new external investors (outsiders) and potentially leads to informational asymmetries in relation to managers and existing shareholders (insiders), which ultimately results in reduced investment efficiency. The aim of this paper is to investigate to what extent the ownership structure influences the selection of conservative accounting policies and management of earnings in the financial statements, and whether, indirectly, accounting conservatism can be used as a means of reducing the possibility of manipulation of earnings. The survey was conducted on a sample of 59 BH companies listed on the Sarajevo and Banja Luka stock exchange in the period from 2012 to 2016. Applying the regression analysis , it was concluded that the ownership structure has a significant impact on selection of conservative accounting policies and management of earnings. Regression models emphasized the role and importance of some forms of ownership in both aspects of research. Using available data, correlation analysis shows that the increased index of conservatism, as a rule, means a reduced level of profit and vice versa. Different effects of these relations are evident on these two stock exchanges, which opens possibilities for additional analysis.

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