We examine the relationship between financial earnings quality and block ownership by institutional investors. This relation is vital given the tremendous growth of institutional ownership and the significant influence of large institutional blockholders on financial earnings quality. Our findings indicate that the presence of institutional blockholders drives higher financial earnings quality. Results from an instrumental variable (IV) approach suggest our documented effects are directional. Next, cross-sectional tests prove that the relationship is more pronounced among firms adopting IFRS and those in countries with minority shareholder protection. Moreover, our results reveal that property rights and the lack of contestability partially mitigate the positive association between institutional ownership and earnings quality. Our findings inform the ongoing debate on the influence of institutional ownership on earnings, which institutional and regulatory dimensions affect earnings, and through what channels these effects run. Overall, our results suggest that beyond corporate governance practices that enhance financial earnings quality, different countries' institutions and regulations settings influence the relation of institutional ownership to earnings quality.

我们研究了机构投资者的财务收益质量和大宗所有权之间的关系。鉴于机构所有权的巨大增长以及大型机构股东对财务收益质量的重大影响，这种关系至关重要。我们的研究结果表明，机构大股东的存在推动了更高的财务收益质量。工具变量 (IV) 方法的结果表明我们记录的效果是定向的。接下来，横断面测试证明，采用 IFRS 的公司与受少数股东保护的国家的公司之间的关系更为明显。此外，我们的结果表明，产权和竞争性的缺乏部分削弱了机构所有权与盈利质量之间的正相关关系。我们的研究结果为正在进行的关于机构所有权对收益的影响、哪些机构和监管维度影响收益以及这些影响通过什么渠道运行的辩论提供了信息。总体而言，我们的结果表明，除了提高财务收益质量的公司治理实践之外，不同国家的制度和监管环境也会影响机构所有权与收益质量的关系。