The Accounting Earnings Quality Of Family Listed Firms

Due to the lack of comprehensive understanding of the family business for many years,many people believe that the family business is a closed, backward and low efficiency oforganizational forms, most of the studies are one-sided from the family business evaluation,the lack of comparison with non-family business, a negative view of the family business isinevitable that some deviation. Similarly, people think the family business as the company’sactual control, the embezzlement of the minority shareholders will be very serious, so itsaccounting earnings quality is relatively low for the quality of accounting earnings. However,as the major shareholder embezzlement of the minority shareholders on a wide range exists inall businesses, so that said lower earnings quality of the family business, a little difficult toconvince people. This article is mainly from the perspective of earnings quality, andspecifically examine accounting earnings quality differences between family businesses andnon-family businesses.2008-2010in China A-share listed companies to study the initial sample, the referencecriteria for family and non-family business at home and abroad, in accordance with thedefinition of family business, the entire sample is divided into two sub-samples, the familybusiness sample and the sample of non-family businesses. First of our family business andnon-family business corporate governance By comparison, our family business to do betterthan non-family business in the dimensions of ownership and control of companymanagement dimension. The quality of corporate earnings due to corporate governance willimpact the rest of this article from an empirical perspective to the visits of family businessesand non-family enterprises on the earnings quality differences. Empirical test of earningsquality, the paper first draw on existing literature, the use of abnormal accruals, AccountingConservatism, Earnings response coefficient (ERC) as the earnings quality metrics,respectively, from three angles to examine the family business and non-differences that existbetween the family business. Through empirical testing can be found in the abnormal accrualsof the family business levels than non-family business, accounting conservatism and earningsresponse coefficients than non-family business, so that our family business accountingearnings quality than non-family business high.