1,319
Views
26
CrossRef citations to date
0
Altmetric
Article

Internal Controls in Family-Owned Firms

Pages 463-482 | Received 01 Jun 2011, Accepted 01 May 2013, Published online: 24 Oct 2013

References

  • Ajinkya, B., Bhojraj, S. and Sengupta, P. (2005) The association between outside directors, institutional investors, and properties of management earnings forecasts, Journal of Accounting Research, 43, pp. 343–376. doi: 10.1111/j.1475-679x.2005.00174.x
  • Ali, A., Chen, T. Y. and Radhakrishnan, S. (2007) Corporate disclosures by family firms, Journal of Accounting and Economics, 44, pp. 238–286. doi: 10.1016/j.jacceco.2007.01.006
  • Anderson, R. C. and Reeb, D. M. (2003) Founding family ownership and firm performance: evidence from S&P 500, The Journal of Finance, LVIII(3), pp. 1301–1327. doi: 10.1111/1540-6261.00567
  • Anderson, R. C. and Reeb, D. M. (2004) Board composition: balancing family influence in S&P 500 firms, Administrative Science Quarterly, 49(2), pp. 209–237.
  • Ashbaugh-Skaife, H., Collins, D. and Kinney, W. (2007) The discovery and reporting of internal control deficiencies prior to SOX-mandated audits, Journal of Accounting and Economics, 44, pp. 166–192. doi: 10.1016/j.jacceco.2006.10.001
  • Beneish, M. D., Billings, M. B. and Hodder, L. D. (2008) Internal control weaknesses and information uncertainty, The Accounting Review, 83(3), pp. 665–703. doi: 10.2308/accr.2008.83.3.665
  • Bennedsen, M., Nielsen, K. M., Pérez-González, F. and Wolfenzon, D. (2007) Inside the family firm: the role of families in succession decisions and performance, The Quarterly Journal of Economics, CXXII, pp. 647–691. doi: 10.1162/qjec.122.2.647
  • Bona-Sanchez, C., Perez-Aleman, J. and Santana-Martin, D. J. (2011) Ultimate ownership and earnings conservatism, European Accounting Review, 20, pp. 57–80. doi: 10.1080/09638180903384676
  • Bowen, R. M., Rajgopal, S. and Venkatachalam, M. (2008) Accounting discretion, corporate governance and firm performance, Contemporary Accounting Research, 25(2), pp. 310–405. doi: 10.1506/car.25.2.3
  • Bushman, R., Chen, Q., Engle, E. and Smith, A. (2004) Financial accounting information, organizational complexity and corporate governance systems, Journal of Accounting and Economics, 37, pp. 167–201. doi: 10.1016/j.jacceco.2003.09.005
  • Cascino, S., Pugliese, A., Mussolino, D. and Sansone, C. (2010) The influence of family ownership on the quality of accounting information, Family Business Review, 23(3), pp. 246–265. doi: 10.1177/0894486510374302
  • Chen, S., Chen, X. and Cheng, Q. (2008) Do family firms provide more or less voluntary disclosure?, Journal of Accounting Research, 46(3), pp. 499–536. doi: 10.1111/j.1475-679X.2008.00288.x
  • Dechow, P. and Dichev, I. (2002) The quality of accruals and earnings: the role of accrual estimation errors, The Accounting Review, 77, pp. 35–59. doi: 10.2308/accr.2002.77.s-1.35
  • Dechow, P., Ge, W. and Schrand, C. (2010) Understanding earnings quality: a review of the proxies, their determinants and their consequences, Journal of Accounting and Economics, 50, pp. 344–401. doi: 10.1016/j.jacceco.2010.09.001
  • Doss, M. and Jonas, G. (2004) Section 404 reports on internal control: impact on ratings will depend on nature of material weaknesses reported. Moody's Investors Service, Global Credit Research, October.
  • Doyle, J., Ge, W. and McVay, S. (2007a) Determinants of weaknesses in internal control over financial reporting, Journal of Accounting and Economics, 44, pp. 193–223. doi: 10.1016/j.jacceco.2006.10.003
  • Doyle, J., Ge, W. and McVay, S. (2007b) Accruals quality and internal control over financial reporting, The Accounting Review, 82, pp. 1141–1170. doi: 10.2308/accr.2007.82.5.1141
  • Fan, J. and Wong, T. J. (2002) Corporate ownership structure and the informativeness of accounting earnings in East Asia, Journal of Accounting and Economics, 33, pp. 401–25. doi: 10.1016/S0165-4101(02)00047-2
  • Florou, A. (2010) The role of taxes in compensation: a case of shareholder expropriation, European Accounting Review, 19, pp. 343–374. doi: 10.1080/09638180903384700
  • Francis, J., LaFond, R., Olsson, P. and Schipper, K. (2004) Costs of equity and earnings attributes, The Accounting Review, 79, pp. 967–1010. doi: 10.2308/accr.2004.79.4.967
  • Francis, J., LaFond, R., Olsson, P. and Schipper, K. (2005a) The market pricing of accruals quality, Journal of Accounting and Economics, 39, pp. 295–327. doi: 10.1016/j.jacceco.2004.06.003
  • Francis, J., Schipper, K. and Vincent, L. (2005b) Earnings and dividend informativeness when cash flow rights are separated from voting rights, Journal of Accounting and Economics, 39, pp. 329–360. doi: 10.1016/j.jacceco.2005.01.001
  • Ge, W. and McVay, S. (2005) The disclosure of material weaknesses in internal control after the Sarbanes-Oxley Act, Accounting Horizons, 19, pp. 137–158. doi: 10.2308/acch.2005.19.3.137
  • Hammersley, J. S., Myers, L. A. and Shakespeare, C. (2008) Market reactions to the disclosure of internal control weaknesses and to the characteristics of those weaknesses under Section 302 of the Sarbanes Oxley Act of 2002, Review of Accounting Studies, 13(1), pp. 141–165. doi: 10.1007/s11142-007-9046-z
  • Hermanson, H. (2000) An analysis of the demand for reporting on internal controls, Accounting Horizons, 14(3), pp. 325–341. doi: 10.2308/acch.2000.14.3.325
  • Hillier, D. (2005) Firm performance, entrenchment and managerial succession in family firms, Working paper. Leeds University.
  • Jiraporn, P. and Dadalt, P. (2009) Does founding family control affect earnings management?, Applied Economics Letters, 16, pp. 113–119. doi: 10.1080/17446540701720592
  • Kinney, W. (2001) Accounting scholarship: what is uniquely ours?, The Accounting Review, 76, pp. 275–284. doi: 10.2308/accr.2001.76.2.275
  • Kinney, W., Maher, M. and Wright, D. (1990) Assertions-based standards for integrated internal control, Accounting Horizons, 4, pp. 1–8.
  • Kinney, W. and McDaniel, L. (1989) Characteristics of firms correcting previously reported quarterly earnings, Journal of Accounting and Economics, 11, pp. 71–93. doi: 10.1016/0165-4101(89)90014-1
  • Krishnan, J. (2005) Audit committee quality and internal control: an empirical analysis, The Accounting Review, 80, pp. 649–675. doi: 10.2308/accr.2005.80.2.649
  • Leuz, C., Nanda, D. and Wysocki, P. D. (2003) Earnings management and investor protection: an international comparison, Journal of Financial Economics, 69, pp. 505–527. doi: 10.1016/S0304-405X(03)00121-1
  • Li, F. and Srinivasan, S. (2011) Corporate governance when founders are directors, Journal of Financial Economics, 2, pp. 454–469. doi: 10.1016/j.jfineco.2010.11.006
  • McMullen, D., Raghunandan, K. and Rama, D. V. (1996) Internal control reports and financial reporting problems, Accounting Horizons, 10, pp. 67–75.
  • Morck, R., Shleifer, A. and Vishny, R. (1988) Management ownership and market valuation: an empirical analysis, Journal of Financial Economics, 20, pp. 293–315. doi: 10.1016/0304-405X(88)90048-7
  • Palepu, K. (1986) Predicting takeover targets, Journal of Accounting and Economics, 8, pp. 3–35. doi: 10.1016/0165-4101(86)90008-X
  • Patelli, L. and Prencipe, A. (2007) The relationship between voluntary disclosure and independent directors in the presence of a dominant shareholder, European Accounting Review, 16, pp. 5–33. doi: 10.1080/09638180701265820
  • Pérez-González, F. (2006) Inherited control and firm performance, The American Economic Review, 96(5), pp. 1559–1588. doi: 10.1257/aer.96.5.1559
  • Petersen, M. A. (2009) Estimating standard errors in finance panel data sets: comparing approaches, Review of Financial Studies, 22, pp. 435–480. doi: 10.1093/rfs/hhn053
  • Prencipe, A. and Bar-Yosef, S. (2011) Corporate governance and earnings management in family-controlled companies, Journal of Accounting, Auditing & Finance, 26, pp. 199–227. doi: 10.1177/0148558X11401212
  • Public Company Accounting Oversight Board (PCAOB) (2004) An audit of internal control over financial reporting performed in conjunction with an audit of financial statements, Auditing Standard No. 2. Washington, DC.
  • Schulze, W. S., Lubatkin, M. H. and Dino, R. N. (2003) Exploring the agency consequences of ownership dispersion among the directors of private family firms, The Academy of Management Journal, 46(2), pp. 179–194. doi: 10.2307/30040613
  • Securities and Exchange Commission (2002) Certification of disclosure in companies’ quarterly and annual reports, Final Rule 33–8124 (August 29). Washington, DC.
  • Securities and Exchange Commission (2003) Management's reports on internal control over financial reporting and certification of disclosure in Exchange Act periodic reports, Final Rule 33–8238 (June 5). Washington, DC.
  • Securities and Exchange Commission (2004) Management's reports on internal control over financial reporting and certification of disclosure in Exchange Act periodic reports: Frequently asked questions (October 6). Washington, DC.
  • Shleifer, A. and Vishny, R. (1997) A survey of corporate governance, The Journal of Finance, 52, pp. 737–783. doi: 10.1111/j.1540-6261.1997.tb04820.x
  • Srinivasan, S. (2005) Consequences of financial reporting failure for outside directors: evidence from accounting restatements and audit committee members, Journal of Accounting Research, 43, pp. 291–334. doi: 10.1111/j.1475-679x.2005.00172.x
  • Villalonga, B. and Amit, R. (2006) How do family ownership, control and management affect firm value?, Journal of Financial Economics, 80, pp. 385–417. doi: 10.1016/j.jfineco.2004.12.005
  • Wang, D. (2006) Founding family ownership and earnings quality, Journal of Accounting Research, 44(3), pp. 619–655. doi: 10.1111/j.1475-679X.2006.00213.x
  • Zhao, R. and Millet-Reyes, B. (2007) Ownership structure and accounting information content: evidence from France, Journal of International Financial Management, 18, pp. 223–246. doi: 10.1111/j.1467-646X.2007.01013.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.