Institutional Ownership: A Driver of Accounting Conservatism and Reporting Quality

Abstract

The study considered institutional ownerships as a driver of accounting conservatism and reporting quality and adopted time series data as its methodology. The objective of this study is to establish a nexus between institutional ownership and the concept of conservatism and reporting quality. The specified model was subjected to relevant eviews test so as to ascertain its potency for planning and predictions. The paper also x-rayed various theories relating to accounting conservatism and the conceptual framework of institutional ownerships. It concluded on the need for stakeholders to place overall corporate interest above parochial personal interest since the seeming potency of a model will ordinarily be defeated if the individual drivers in the entity are bent on pursuing wishful lust and sacrifice the destiny of the entity on the altar of avarice and extravagance. The paper recommended for the management not only to be doing the right thing but should be seen to have also done the right thing.