512
Views
0
CrossRef citations to date
0
Altmetric
Articles

The Boss Behind the Scenes: Nonfamily Leadership and Earnings Management

, &
Pages 647-675 | Received 25 Jan 2021, Accepted 06 Aug 2022, Published online: 01 Sep 2022

References

  • Achleitner, A. K., Günther, N., Kaserer, C., & Siciliano, G. (2014). Real earnings management and accrual-based earnings management in family firms. European Accounting Review, 23(3), 431–461. https://doi.org/10.1080/09638180.2014.895620
  • Ali, A., Chen, T., & Radhakrishnan, S. (2007). Corporate disclosures by family firms. Journal of Accounting and Economics, 44(1–2), 238–286. https://doi.org/10.1016/j.jacceco.2007.01.006
  • Allen, F., Qian, J., & Qian, M. (2005). Law, finance, and economic growth in China. Journal of Financial Economics, 77(1), 57–116. https://doi.org/10.1016/j.jfineco.2004.06.010
  • Amit, R., Ding, Y., Villalonga, B., & Zhang, H. (2015). The role of institutional development in the prevalence and performance of entrepreneur and family-controlled firms. Journal of Corporate Finance, 31, 284–305. https://doi.org/10.1016/j.jcorpfin.2015.01.001
  • Anderson, R. C., & Reeb, D. M. (2003). Founding-family ownership and firm performance: Evidence from the S&P 500. The Journal of Finance, 58(3), 1301–1328. https://doi.org/10.1111/1540-6261.00567
  • Banerjee, A., Nordqvist, M., & Hellerstedt, K. (2020). The role of the board chair—A literature review and suggestions for future research. Corporate Governance: An International Review, 28(6), 372–405. https://doi.org/10.1111/corg.12350
  • Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
  • Beaver, W. H. (1968). The information content of annual earnings announcements. Journal of Accounting Research, 6, 67–92. https://doi.org/10.2307/2490070
  • Bennedsen, M., Nielsen, K. M., Pérez-González, F., & Wolfenzon, D. (2007). Inside the family firm: The role of families in succession decisions and performance. The Quarterly Journal of Economics, 122(2), 647–691. https://doi.org/10.1162/qjec.122.2.647
  • Bertrand, M., Johnson, S., Samphantharak, K., & Schoar, A. (2008). Mixing family with business: A study of Thai business groups and the families behind them. Journal of Financial Economics, 88(3), 466–498. https://doi.org/10.1016/j.jfineco.2008.04.002
  • Bohren, O., Stacescu, B., Almli, L. F., & Sondergaard, K. L. (2019). When does the family govern the family firm? Journal of Financial and Quantitative Analysis, 54(5), 2085–2117. https://doi.org/10.1017/S0022109018001102
  • Burkart, M., Panunzi, F., & Shleifer, A. (2003). Family firms. The Journal of Finance, 58(5), 2167–2201. https://doi.org/10.1111/1540-6261.00601
  • Chahine, S., & Goergen, M. (2013). The effects of management-board ties on IPO performance. Journal of Corporate Finance, 21, 153–179. https://doi.org/10.1016/j.jcorpfin.2013.02.001
  • Chang, S. J., & Shim, J. (2015). When does transitioning from family to professional management improve firm performance? Strategic Management Journal, 36(9), 1297–1316. https://doi.org/10.1002/smj.2289
  • Chen, G., Chittoor, R., & Vissa, B. (2021). Does nepotism run in the family? CEO pay and pay-performance sensitivity in Indian family firms. Strategic Management Journal, 42(7), 1326–1343. https://doi.org/10.1002/smj.3263
  • Chen, H., Chen, J. Z., Lobo, G. J., & Wang, Y. (2011). Effects of audit quality on earnings management and cost of equity capital: Evidence from China. Contemporary Accounting Research, 28(3), 892–925. https://doi.org/10.1111/j.1911-3846.2011.01088.x
  • Cheng, Q., & Warfield, T. D. (2005). Equity incentives and earnings management. The Accounting Review, 80(2), 441–476. https://doi.org/10.2308/accr.2005.80.2.441
  • Churchill, N. C., & Hatten, K. J. (1987). Non-market-based transfers of wealth and power: A research framework for family businesses. American Journal of Small Business, 11(3), 51–64. https://doi.org/10.1177/104225878701100305
  • Core, J. E., Guay, W., & Larcker, D. F. (2008). The power of the pen and executive compensation. Journal of Financial Economics, 88(1), 1–25. https://doi.org/10.1016/j.jfineco.2007.05.001
  • Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic Literature, 47(2), 448–474. https://doi.org/10.1257/jel.47.2.448
  • Dechow, P. M., Hutton, A. P., Kim, J. H., & Sloan, R. G. (2012). Detecting earnings management: A new approach. Journal of Accounting Research, 50(2), 275–334. https://doi.org/10.1111/j.1475-679X.2012.00449.x
  • Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. Accounting Review, 70(2), 193–225. https://www.jstor.org/stable/248303
  • Deephouse, D. L., & Jaskiewicz, P. (2013). Do family firms have better reputations than non-family firms? An integration of socioemotional wealth and social identity theories. Journal of Management Studies, 50(3), 337–360. https://doi.org/10.1111/joms.12015
  • Ding, S., Qu, B., & Zhuang, Z. (2011). Accounting properties of Chinese family firms. Journal of Accounting, Auditing & Finance, 26(4), 623–640. https://doi.org/10.1177/0148558X11409147
  • Doyle, J. T., Ge, W., & McVay, S. (2007). Accruals quality and internal control over financial reporting. The Accounting Review, 82(5), 1141–1170. https://doi.org/10.2308/accr.2007.82.5.1141
  • DuCharme, L. L., Malatesta, P. H., & Sefcik, S. E. (2004). Earnings management, stock issues, and shareholder lawsuits. Journal of Financial Economics, 71(1), 27–49. https://doi.org/10.1016/S0304-405X(03)00182-X
  • Fan, J. P., & Wong, T. J. (2002). Corporate ownership structure and the informativeness of accounting earnings in east Asia. Journal of Accounting and Economics, 33(3), 401–425. https://doi.org/10.1016/S0165-4101(02)00047-2
  • Giannetti, M., Liao, G., & Yu, X. (2015). The brain gain of corporate boards: Evidence from China. The Journal of Finance, 70(4), 1629–1682. https://doi.org/10.1111/jofi.12198
  • Gul, F. A., Kim, J., & Qiu, A. A. (2010). Ownership concentration, foreign shareholding, audit quality, and stock price synchronicity: Evidence from China. Journal of Financial Economics, 95(3), 425–442. https://doi.org/10.1016/j.jfineco.2009.11.005
  • Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1–3), 405–440. https://doi.org/10.1016/S0165-4101(01)00018-0
  • Healy, P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13(4), 365–383. https://doi.org/10.2308/acch.1999.13.4.365
  • Isakov, D., & Weisskopf, J. P. (2015). Pay-out policies in founding family firms. Journal of Corporate Finance, 33, 330–344. https://doi.org/10.1016/j.jcorpfin.2015.01.003
  • Jian, M., & Wong, T. J. (2010). Propping and tunneling through related party transactions. Review of Accounting Studies, 15(1), 70–105. https://doi.org/10.1007/s11142-008-9081-4
  • Jiang, F., & Kim, K. A. (2015). Corporate governance in China: A modern perspective. Journal of Corporate Finance, 32, 190–216. https://doi.org/10.1016/j.jcorpfin.2014.10.010
  • Jiang, F., & Kim, K. A. (2020). Corporate governance in China: A survey. Review of Finance, 24(4), 733–772. https://doi.org/10.1093/rof/rfaa012
  • Jiang, F., Shi, W., & Zheng, X. (2020). Board chairs and R&D investment: Evidence from Chinese family-controlled firms. Journal of Business Research, 112, 109–118. https://doi.org/10.1016/j.jbusres.2020.02.026
  • Jiang, W., Wan, H., & Zhao, S. (2016). Reputation concerns of independent directors: Evidence from individual director voting. Review of Financial Studies, 29(3), 655–696. https://doi.org/10.1093/rfs/hhv125
  • Jones, J. J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29(2), 193–228. https://doi.org/10.2307/2491047
  • Judd, C. M., & Kenny, D. A. (1981). Process analysis: Estimating mediation in treatment evaluations. Evaluation Review, 5(5), 602–619. https://doi.org/10.1177/0193841X8100500502
  • Kim, J. B., Si, Y., Xia, C., & Zhang, L. (2021). Corporate derivatives usage, information environment, and stock price crash risk*. European Accounting Review. Advance online publication. https://doi.org/10.1080/09638180.2021.1918564.
  • Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33(3), 375–400. https://doi.org/10.1016/S0165-4101(02)00059-9
  • Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197. https://doi.org/10.1016/j.jacceco.2004.11.002
  • Krause, R., Li, W., Ma, X., & Bruton, G. D. (2019). The board chair effect across countries: An institutional view. Strategic Management Journal, 40(10), 1570–1592. https://doi.org/10.1002/smj.3057
  • Krause, R., Semadeni, M., & Withers, M. C. (2016). That special someone: When the board views its chair as a resource. Strategic Management Journal, 37(9), 1990–2002. https://doi.org/10.1002/smj.2444
  • Lai, S., Li, Z., & Yang, Y. G. (2020). East, west, home’s best: Do local CEOs behave less myopically? The Accounting Review, 95(2), 227–255. https://doi.org/10.2308/accr-52555
  • La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world. The Journal of Finance, 54(2), 471–517. https://doi.org/10.1111/0022-1082.00115
  • Leone, A. J., & Liu, M. (2010). Accounting irregularities and executive turnover in founder-managed firms. The Accounting Review, 85(1), 287–314. https://doi.org/10.2308/accr.2010.85.1.287
  • Li, Z., Ryan, H. E., Jr., & Wang, L. (2021). Pay for outsiders: Incentive compensation for nonfamily executives in family firms. Contemporary Accounting Research, 38(2), 1139–1176. https://doi.org/10.1111/1911-3846.12650
  • Martin, G., Campbell, J. T., & Gomez-Mejia, L. (2016). Family control, socioemotional wealth and earnings management in publicly traded firms. Journal of Business Ethics, 133(3), 453–469. https://doi.org/10.1007/s10551-014-2403-5
  • Maury, B. (2006). Family ownership and firm performance: Empirical evidence from western European corporations. Journal of Corporate Finance, 12(2), 321–341. https://doi.org/10.1016/j.jcorpfin.2005.02.002
  • Meier, O., & Schier, G. (2021). CSR and family CEO: The moderating role of CEO’s age. Journal of Business Ethics, 174(3), 595–612. https://doi.org/10.1007/s10551-020-04624-z
  • Miller, D., & Le Breton-Miller, I. (2003). Challenge versus advantage in family business. Strategic Organization, 1(1), 127–134. https://doi.org/10.1177/1476127003001001222
  • Morck, R., Shleifer, A., & Vishny, R. W. (1988). Management ownership and market valuation: An empirical analysis. Journal of Financial Economics, 20, 293–315. https://doi.org/10.1016/0304-405X(88)90048-7
  • Park, S. H., & Luo, Y. (2001). Guanxi and organizational dynamics: Organizational networking in Chinese firms. Strategic Management Journal, 22(5), 455–477. https://doi.org/10.1002/smj.167
  • Pazzaglia, F., Mengoli, S., & Sapienza, E. (2013). Earnings quality in acquired and nonacquired family firms. Family Business Review, 26(4), 374–386. https://doi.org/10.1177/0894486513486343
  • Prencipe, A., Bar-Yosef, S., & Dekker, H. C. (2014). Accounting research in family firms: Theoretical and empirical challenges. European Accounting Review, 23(3), 361–385. https://doi.org/10.1080/09638180.2014.895621
  • Serfling, M. A. (2014). CEO age and the riskiness of corporate policies. Journal of Corporate Finance, 25, 251–273. https://doi.org/10.1016/j.jcorpfin.2013.12.013
  • Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737–783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
  • Shust, E. (2015). Does research and development activity increase accrual-based earnings management? Journal of Accounting, Auditing & Finance, 30(3), 373–401. https://doi.org/10.1177/0148558X14560901
  • Song, F., & Thakor, A. V. (2006). Information control, career concerns, and corporate governance. The Journal of Finance, 61(4), 1845–1896. https://doi.org/10.1111/j.1540-6261.2006.00891.x
  • Tabor, W., Chrisman, J. J., Madison, K., & Vardaman, J. M. (2018). Nonfamily members in family firms: A review and future research agenda. Family Business Review, 31(1), 54–79. https://doi.org/10.1177/0894486517734683
  • Villalonga, B., & Amit, R. (2006). How do family ownership, control and management affect firm value? Journal of Financial Economics, 80(2), 385–417. https://doi.org/10.1016/j.jfineco.2004.12.005
  • Wang, D. (2006). Founding family ownership and earnings quality. Journal of Accounting Research, 44(3), 619–656. https://doi.org/10.1111/j.1475-679X.2006.00213.x
  • Weiss, D. (2014). Internal controls in family-owned firms. European Accounting Review, 23(3), 463–482. https://doi.org/10.1080/09638180.2013.821814
  • Withers, M. C., & Fitza, M. A. (2017). Do board chairs matter? The influence of board chairs on firm performance. Strategic Management Journal, 38(6), 1343–1355. https://doi.org/10.1002/smj.2587
  • Yang, M. (2010). The impact of controlling families and family CEOs on earnings management. Family Business Review, 23(3), 266–279. https://doi.org/10.1177/0894486510374231
  • Yeh, Y. H., & Liao, C. C. (2021). Are non-family successors all the same? Inside-promoted vs. Outside-sourced. Journal of Corporate Finance, 71, Article 102122. https://doi.org/10.1016/j.jcorpfin.2021.102122
  • Young, M. N., Peng, M. W., Ahlstrom, D., Bruton, G. D., & Jiang, Y. (2008). Corporate governance in emerging economies: A review of the principal–principal perspective. Journal of Management Studies, 45(1), 196–220. https://doi.org/10.1111/j.1467-6486.2007.00752.x
  • Zellweger, T. M., Nason, R. S., Nordqvist, M., & Brush, C. G. (2013). Why do family firms strive for nonfinancial goals? An organizational identity perspective. Entrepreneurship Theory and Practice, 37(2), 229–248. https://doi.org/10.1111/j.1540-6520.2011.00466.x

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.