Using a panel of publicly traded companies with large changes in institutional holdings, we find that CEO compensation risk is significantly higher in a company with a higher level of aggregate institutional holdings excluding top five holdings. Conversely, institutional ownership concentration,...

Purpose – The purpose of this paper is to extend prior findings on firms’ rounding up net income numbers to meet cognitive reference points and to examine whether segment-level earnings exhibit similar unusual patterns. Design/methodology/approach – This study is an archival research based...