[RESEARCH] - Congratulations to Dr. Domenico Campa!

Dr. Domenico Campa's article, "Employee Share Ownership and the Nature of Earnings Management" is published in the 2* International Review of Applied Economics and co-authored with Drs. Joseph Abdel Nour and Nicolas Aubert.

♦ Using a sample of French listed companies, this article investigates whether employee share ownership plays a role on the nature of earnings management.

♦ Using an agency theory approach, we first observe that, in general, French companies use earnings management opportunistically rather than for informative purposes.

♦ Then, we find that employee share ownership mitigates earnings management by

𝟭) reducing the overall earnings management level and 

𝟮) making earnings management less opportunistic and more beneficial for the company.

♦ This study extends the very limited research on the relation between corporate governance and earnings management in France and provides a more comprehensive picture of this association in the French context.

♦ It studies the nature of earnings management in France, a perspective largely neglected by previous research on French companies. It also presents a first exploratory study on the impact of employee share ownership on earnings management and on its nature, which is something that, to the best of our knowledge, has not been done before.

▶ Read the full article