Family Control, Corporate Governance And Accounting Information Quality

Accompanied by family businesses continue to enter the capital market, due tothe dominance of the family business has gradually become the focus of attention ofthe capital market. Thesis, the impact of the corporate governance structure of thefamily of listed companies on accounting earnings quality, financial statement datacollected2008-2011421family business, ownership structure and composition of theBoard of Directors of the inspection and the family business accounting information.The family members involved in the management and the board to increase thedifficulty of the internal corporate governance of the family business, an adverseeffect on the quality of accounting information. The empirical results show: familyquality of accounting information of listed companies exists a positive correlationbetween the degree of checks and balances and the equity of the family business, thegreater the degree of equity checks and balances, the higher the quality of accountinginformation; proportion of family directors staff and there is a negative correlationbetween the quality of accounting information, the greater the proportion of familydirectors, the lower the quality of accounting information.Earnings management behavior of the corporate governance structure of thefamily business, the impact to the quality of accounting information to mislead theoutside investors, damage to the interests of investors, but also affect the efficiency ofthe capital market allocation of resources. Therefore, the Commission must firststrengthen supervision and improve the institutional construction, increase thepunishment, to promote the normal orderly operation of China’s capital market,increase social wealth.