Family ownership, family identity of CEO, and accounting conservatism: Evidence from Taiwan

Hsu, H.; Tsao, S.; Lin, C.

Abstract

This study investigates how variations in family ownership configurations and family identity of the CEO affect family firms’ accounting conservatism in the East Asian economy, Taiwan. To address this objective, this study extends the traditional agency perspective and employs a socioemotional wealth framework. Findings document that family ownership is positively associated with family firms’ accounting conservatism, whereas the degree of disparity between family cash flow and voting rights is negatively related to accounting conservatism. Additionally, family firms with a founder CEO are more likely to report conservatively than those with a descendent CEO. Our study expands the growing literature on how family owners’ corporate governance features affect financial reporting decisions.

Citation

Hsu, H., Tsao, S., & Lin, C. (2022). Family ownership, family identity of CEO, and accounting conservatism: Evidence from Taiwan. Accounting Forum, 46(4), 315-343. https://doi.org/10.1080/01559982.2021.1957542

• Journal Article Type: Article
• Acceptance Date: Jun 15, 2021
• Online Publication Date: Aug 27, 2021
• Publication Date: 2022
• Deposit Date: Jul 19, 2021
• Publicly Available Date: Feb 27, 2023
• Journal: Accounting Forum
• Print ISSN: 0155-9982
• Electronic ISSN: 1467-6303
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 46
• Issue: 4
• Pages: 315-343
• DOI: https://doi.org/10.1080/01559982.2021.1957542
• Public URL: https://durham-repository.worktribe.com/output/1271830