Abstract

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Title:: Family enterprise power configuration affect accounting conservatism

Author(s):: DENG Jian-ping; CHEN Ai-hua; 1. Office of Graduate, Xiamen National Accounting Institute, Xiamen 361005, Fujian, China； 2. Center of Education and Teaching Research, Xiamen National Accounting Institute, Xiamen 361005, Fujian, China

Keywords:: family enterprise; power configuration; accounting conservatism; accounting information quality; listed company; Fujian

Abstract:: In this paper, taking the family listed companies in Fujian during 2005 and 2014 as the research object, this paper discussed the effect of power configuration of the family enterprises on accounting conservatism. Through the empirical analysis of 310 sample companies, its discovered that, if the actual controllers of family enterprises hold the position of board chairman or general manager or both of them, the accounting conservatism is worse than that of those family enterprises in which actual controllers hold no position of chairman or general manager. The stronger the family control force is, the worse accounting conservatism will be. These findings indicate that the families involvement in the enterprises management and operation can weaken the quality of accounting information.