Work

Earnings Quality in Acquired and Non-acquired Family Firms: A Socioemotional Wealth Perspective

Year: 2013

Type: preprint

Abstract: We develop a socioemotional wealth explanation for the differences in earnings quality between family firms. We argue that the process by which families obtain ownership of firms is a key contingency affecting earnings quality. Specifically, firms acquired by families through market transactions display lower earnings quality due to lower identification of family owners relative to firms still owned by the families that created them. Acquired family firms benefit with respect to their earnings quality from having a nonfamily CEO while nonacquired family firms benefit from having a family CEO.

Source: SSRN Electronic Journal

DOI: 10.1177/0894486513486343

Authors: Federica Pazzaglia, Stefano Mengoli, Elena Sapienza

Institutions: University College Dublin, University of Bologna, University of Padua

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2136204601

Cites: 54

Cited by: 22

Related to: 10