Topic：Individualist-Collectivist Culture, Ownership Concentration and Earnings Quality: A Comparison of Western Europe and East Asia
Time：January 3, 2014（Friday）16:00-17：30
Venue：Room 501, Jiageng Bld 2
Presenter：Venessa Lyu, accounting lecturer，Macau University of Science and Technology
Chair：Tony Ruan, assistant professor of finance, IFAS
Abstract：
This study explores the effects of individualist-collectivist culture, an important dimension of national cultures, on the entrenchment incentives of large shareholders. Specifically, it investigates how individualist-collectivist culture affects the relationship between ownership concentration and earnings quality. Collecting data from thirteen Western Europe and nine East Asia economies between 1995 and 2011, we find that the poor earnings quality induced by ownership concentration is mitigated in individualist societies after controlling for the legal institutions, financial development and economic wealth. We further find that the poor earnings quality induced by ownership concentration is more pronounced in East Asia. This study sheds light on the role that individualist-collectivist culture plays in shaping corporate insiders’ ethical behavior. The findings in this study help international investors and auditors better evaluate the earnings quality and agency problems in Western Europe and East Asia.
Presenter Introduction：
Dr. Lyu is currently serving as the accounting lecturer in School of Business at Macau University of Science and Technology. She earned her BBA and Master degree from University of Macau. She teaches Cost Accounting, Advanced Management Accounting and Practice, Equities and Investment Analysis. Moreover, she published in such journals as the International Journal of Accounting and Information Management, Corporate Ownership and Control, and Asian Journal of Finance & Accounting. Her research interests include financial accounting, corporate governance, and corporate finance.
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