The Impact of Ownership Structure on Accounting Conservatism in GCC Countries

This study aims to examine the impact of ownership structure on accounting conservatism among the Gulf Cooperation Council (GCC) countries' publicly listed firms. By using the multivariant regression model, the results of this study show a significant association between the firms' ownership structure variables (i e. foreign ownership and largest shareholder ownership) and accounting conservatism. This study provides new evidence on the importance of ownership structure variables and their impact on the firm's accounting conservatism in emerging stock markets. The results of this study are undoubtedly of great interest to the regulatory bodies, shareholders, and governments in the GCC countries. Also, the results of this study can be used as a guideline by the stakeholders to set a sound and efficient ownership structure that can support the organization in minimizing the agency problem. The study findings can provide a valuable insight to the shareholders in GCC countries and aid in understating the impact of different ownership structures on accounting conservatism.