The Relationship among Attributes of Family Business, Corporate Governance and Earnings Management

• Main Authors: Ning-sih Yun, 雲寧思
• Other Authors: Jung-Hua Hung
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/55316223013175177377

碩士 === 國立中央大學 === 企業管理研究所 === 96 === The purpose of this study is to investigate how attributes of family business affect earnings management behavior and whether the effects of corporate governance mechanisms on earnings management behavior have significant differences due to attributes of family business. The empirical results indicate that earnings management behavior is greatly affected by whether the firm is family-controlled or not. Compared with non-family business, the possibility of earnings management for family business is lower, which brings the spirit of stewardship theory into full play. The results also show that when the firm is family-controlled, related party transactions efficiently fulfill underlying economic needs of the firm and then lower the possibility of earnings management; if the firm is family controlled, the tenure of outside directors will restrain earnings management behavior, which supports the expertise hypothesis; non-family firms engage in more earnings management as the ratio of financial leverage increases, but engage in less earnings management as the ratio of outside director experience increases. In addition, this study finds that the monitoring effect of institutional investors is affected by information transparency. The results of this study help us better understand the relationship among attributes of family business, corporate governance and earnings management.