Do internally managed REITs manage earnings more than externally managed REITs?
The purpose of the paper was to provide an empirical examination of earnings management among internally and externally managed REITs. The empirical accounting literature claims that internal management of a firm does not constrain earnings management, while others argue in favor of internal managem...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Walter de Gruyter GmbH
2024
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| Subjects: | |
| Online Access: | https://repository.londonmet.ac.uk/9575/1/Do-Internally-Managed-Reits-Manage-Earnings-More-Than-Externally-Managed-Reits.pdf |
| _version_ | 1824446478487126016 |
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| author | Ajayi, Oluwaseun Damilola Akinsomi, Omokolade |
| author_facet | Ajayi, Oluwaseun Damilola Akinsomi, Omokolade |
| author_sort | Ajayi, Oluwaseun Damilola |
| collection | LMU |
| description | The purpose of the paper was to provide an empirical examination of earnings management among internally and externally managed REITs. The empirical accounting literature claims that internal management of a firm does not constrain earnings management, while others argue in favor of internal management for firms. Using a sample of listed South African REITs for the 2013 - 2021 time period, we examine the relationship between management structures and earnings management. We do not find any aggressive practice in internally managed REITs during the study period. The study’s findings imply that good corporate governance is a critical safeguard for stakeholders in exceptional circumstances when REITs have special incentives to manage earnings; as a result, it is suggested that REITs’ corporate governance is important, despite being overlooked in some circumstances. Specific to South African REITs, policymakers as well as nominating committees of the board of directors may wish to take note that financial competence is an important quality of external directors in order to effectively curb earnings management. This is the first study to investigate financial sheet manipulation among REITs management structures in an emerging market. |
| first_indexed | 2025-02-19T01:15:48Z |
| format | Article |
| id | oai:repository.londonmet.ac.uk:9575 |
| institution | London Metropolitan University |
| language | English |
| last_indexed | 2025-02-19T01:15:48Z |
| publishDate | 2024 |
| publisher | Walter de Gruyter GmbH |
| record_format | eprints |
| spelling | oai:repository.londonmet.ac.uk:95752025-01-02T12:33:31Z https://repository.londonmet.ac.uk/9575/ Do internally managed REITs manage earnings more than externally managed REITs? Ajayi, Oluwaseun Damilola Akinsomi, Omokolade 650 Management & auxiliary services The purpose of the paper was to provide an empirical examination of earnings management among internally and externally managed REITs. The empirical accounting literature claims that internal management of a firm does not constrain earnings management, while others argue in favor of internal management for firms. Using a sample of listed South African REITs for the 2013 - 2021 time period, we examine the relationship between management structures and earnings management. We do not find any aggressive practice in internally managed REITs during the study period. The study’s findings imply that good corporate governance is a critical safeguard for stakeholders in exceptional circumstances when REITs have special incentives to manage earnings; as a result, it is suggested that REITs’ corporate governance is important, despite being overlooked in some circumstances. Specific to South African REITs, policymakers as well as nominating committees of the board of directors may wish to take note that financial competence is an important quality of external directors in order to effectively curb earnings management. This is the first study to investigate financial sheet manipulation among REITs management structures in an emerging market. Walter de Gruyter GmbH 2024-07-29 Article PeerReviewed text en cc_by_4 https://repository.londonmet.ac.uk/9575/1/Do-Internally-Managed-Reits-Manage-Earnings-More-Than-Externally-Managed-Reits.pdf Ajayi, Oluwaseun Damilola and Akinsomi, Omokolade (2024) Do internally managed REITs manage earnings more than externally managed REITs? Real Estate Management and Valuation, 32 (4). pp. 28-43. ISSN 2300-5289 https://doi.org/10.2478/remav-2024-0033 10.2478/remav-2024-0033 10.2478/remav-2024-0033 |
| spellingShingle | 650 Management & auxiliary services Ajayi, Oluwaseun Damilola Akinsomi, Omokolade Do internally managed REITs manage earnings more than externally managed REITs? |
| title | Do internally managed REITs manage earnings more than externally managed REITs? |
| title_full | Do internally managed REITs manage earnings more than externally managed REITs? |
| title_fullStr | Do internally managed REITs manage earnings more than externally managed REITs? |
| title_full_unstemmed | Do internally managed REITs manage earnings more than externally managed REITs? |
| title_short | Do internally managed REITs manage earnings more than externally managed REITs? |
| title_sort | do internally managed reits manage earnings more than externally managed reits |
| topic | 650 Management & auxiliary services |
| url | https://repository.londonmet.ac.uk/9575/1/Do-Internally-Managed-Reits-Manage-Earnings-More-Than-Externally-Managed-Reits.pdf |
| work_keys_str_mv | AT ajayioluwaseundamilola dointernallymanagedreitsmanageearningsmorethanexternallymanagedreits AT akinsomiomokolade dointernallymanagedreitsmanageearningsmorethanexternallymanagedreits |