| dc.description.abstract | Previous studies have characterized institutional shareholders as professional monitors with high expertise and discipline, yet, leave an ambiguity on the effect of blockholdings of these shareholders on financial reporting quality (FRQ). Using a sample of listed firms in the U.S. during the period 1980 - 2017, I find that the presence of institutional blockholders results in a better FRQ subsequently. The impact is more pronounced with the increased block size. Moreover, holding multiple blocks across firms is discovered to strengthen the influence of institutional shareholders on firms’ FRQ. My paper contributes to the literature of FRQ’s determinants and the role of blockholders as well as sheds lights above the existing debate on the effect of multiple blockholdings.
Keywords: institutional blockholdings, multiple blockholdings, blockholders, financial reporting quality | en_US |
