Purpose – This paper aims to examine the relationship between different types of shareholders that command share ownership family institutions or external block holders and earnings management. In addition it examines the effect of company size on earnings management. Design/methodology/approach – The sample includes 67 companies listed in the Mexican Stock Exchange for the period 2005-2015. The sample composition is quite industry-balanced. A cross-sectional version of the Jones model (1991) is to measure the earnings management. The GMM (generalized method of moments) model is also estimated. Findings – The results show that family and institutional ownership reduce the earnings management but the impact is different depending on the company size. Research limitations/implications – The results show that there is a clear relationship between increasing participation of fam...

Purpose. This paper aims to examine the relationship between different types of shareholders that command share ownership, family, institutions or external blockholders and earnings management. In addition, it examines the effect of company size on earnings management. Design/methodology/approach. The sample includes 67 companies listed in the Mexican Stock Exchange for the period 2005-2015. The sample composition is quite industry-balanced. A cross-sectional version of the Jones model (1991) is to measure the earnings management. The GMM (generalized method of moments) model is also estimated. Findings. The results show that family and institutional ownership reduce the earnings management, but the impact is different depending on the company size. Research limitations/implications. The results show that there is a clear relationship between increasing participation of family and instit...