OWNERSHIP STRUCTURE AND ACCRUAL EARNINGS MANAGEMENT: THE MODERATING EFFECT OF FIRM SIZE IN LISTED COMPANIES WITHIN THE OHADA MEMBER STATES

<p>This study investigates the effect of ownership structure on accrual earnings management of listed firms in Organisation for the Harmonisation of Business Law in Africa (OHADA) member states, taking into account company size as a moderator from 2018 to 2023. Using panel data from the financial statements of 23 companies listed on the BRVM and BVMAC exchanges, the study employed the estimated residuals of Kothari <em>et al.</em> (2005) to measure accrual earnings management. Ownership structure was measured as a percentage of shares held by each of the categories of ownership. The suggested effect (direct and moderated effect) of ownership structure on accrual earnings management was tested using the Prais–Winsten regression with Panel-Corrected Standard Errors (PCSE). The empirical evidence of the non-moderated PCSE has shown that the ownership structures examined in the study (ownership concentration, individual ownership and foreign ownership) do not have any significant effect on accrual earnings management. However, findings of the moderated effect show that individual ownership has a positive and significant effect on accrual earnings management, suggesting that individual ownership is generally linked to more accrual-based earnings manipulation. This positive correlation between accrual earnings management and individual ownership diminishes with increasing firm size. The study recommends, amongst others, that policymakers in OHADA jurisdictions should prioritize the development and implementation of targeted corporate governance frameworks that address ownership structure dynamics and their implications for earnings management practices.</p><p> </p><p><strong>JEL:</strong> M41 – Accounting, G32 – Financing Policy, Capital and Ownership Structure, C23 – Panel Data Models, G34 – Corporate Governance</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/lit/0759/a.php" alt="Hit counter" /></p>