Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 16 1 2009 04 21 The Relationship between Institutional Investors and Earnings Informativeness The Relationship between Institutional Investors and Earnings Informativeness 19962 FA Gholamreza Karami 0000-0003-3101-1549 Journal Article 1970 01 01 Investment institutions with substantial shareholdings in a firm have the resources and incentives to monitor and influence management decisions. Whether the institutions actually monitor and exert pressure on managers is an empirical question.This study is designed to provide insights into the monitoring role of institutional investors by examining whether institutional ownership affects the informativeness of reported earnings. In this study, different hypothesis (active Monitoring Hypothesis & private benefits Hypothesis) in relation to institutional investors, are tested. two multifold linear regressions analysis is used to test the relation between corporate Earnings informativeness and institutional ownership. The results demonstrate significant evidence of a positive association between percent of institutional stock ownership and Earnings informativeness and approve Effective Monitoring Hypothesis. In addition, the number of institutional ownership dose not improve Earnings informativeness and decreases it. Investment institutions with substantial shareholdings in a firm have the resources and incentives to monitor and influence management decisions. Whether the institutions actually monitor and exert pressure on managers is an empirical question.This study is designed to provide insights into the monitoring role of institutional investors by examining whether institutional ownership affects the informativeness of reported earnings. In this study, different hypothesis (active Monitoring Hypothesis & private benefits Hypothesis) in relation to institutional investors, are tested. two multifold linear regressions analysis is used to test the relation between corporate Earnings informativeness and institutional ownership. The results demonstrate significant evidence of a positive association between percent of institutional stock ownership and Earnings informativeness and approve Effective Monitoring Hypothesis. In addition, the number of institutional ownership dose not improve Earnings informativeness and decreases it. https://acctgrev.ut.ac.ir/article_19962_84ca4c05d035ec61aba96e83dc3661ed.pdf