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The impact of accounting practices on financial sustainability: A study of external block-holders and institutional ownership

Author

Listed:
  • Yufei Cao

    (Shandong Institute of Commerce and Technology)

  • Abdulmajeed Mawhan H. Alfadhli

    (King Saud University)

  • Mohammad Jaradat

    (University, Bogdan Voda)

  • Ramona Lile

    (University of Aurel Vlaicu)

  • Mihaela Gadoiu

    (National University of Science and Technology Politehnica Bucharest, Pitesti University Center)

  • Mariana Banuta

    (National University of Science and Technology Politehnica Bucharest, Pitesti University Center)

  • Daniela Mihai

    (National University of Science and Technology Politehnica Bucharest, Pitesti University Center)

  • Malik Shahzad Shabbir

    (ILMA University)

Abstract

This study intends to investigate the impact of the accounting number game on financial sustainability. It investigates the role of external block-holders and institutional ownership on the association between accounting number game and financial sustainability. This study uses a sample of listed companies in the Pakistan Stock Exchange (PSX). Logit analysis is used to see the influence of accounting numbers’ games on financial sustainability. Additionally, the moderating impact of external block-holders and institutional ownership on the association between accounting numbers’ game and financial sustainability is examined. This study documents the novel evidence that accounting numbers games worsen the financial sustainability of companies and it can be improved by limiting the earnings management practices of managers through “efficient-market hypothesis”.

Suggested Citation

  • Yufei Cao & Abdulmajeed Mawhan H. Alfadhli & Mohammad Jaradat & Ramona Lile & Mihaela Gadoiu & Mariana Banuta & Daniela Mihai & Malik Shahzad Shabbir, 2024. "The impact of accounting practices on financial sustainability: A study of external block-holders and institutional ownership," Review of Managerial Science, Springer, vol. 18(7), pages 1945-1961, July.
    • Handle: RePEc:spr:rvmgts:v:18:y:2024:i:7:d:10.1007_s11846-024-00761-1
    DOI: 10.1007/s11846-024-00761-1
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