Characteristics Of The Control And Accounting Transparency Of The Family Business

The various stakeholders of the listing Corporation is the listing Corporation to provide the balance sheet, income statement and other financial information to determine strategy or method, and listing Corporation stakeholders by shareholders, managers, creditors, debtors, employees, customers and the government and the public etc., so the transparency of financial information of the listing Corporation is the company identification quality, basis for investment decision. In addition, the stock market as an important part of the capital market, the listing Corporation is part of the securities market, The financial information transparency directly affects the healthy development of capital market. The accounting information transparency of listed companies, the financial information of listed companies continues to open to all stakeholders who play a guiding role. With the rapid development of China’s economy development, the development of private enterprises is becoming more and more fast, many private enterprises are listed, however, family businesses as an important part of Chinese private listed companies, the study will be a focus in the family business, family business financial information transparency also will be the hot spot in the capital market. And control is the most can show different properties in the joint-stock company total equity stake in the proportion and their mutual relations. So, in this paper, we study the private enterprises of the listed company control all aspects of the features of family business and the relationship between accounting transparency.This paper Based on listed on the Shenzhen stock exchange in 2008 to 2013, the family controlled listed companies as samples to study the family firm control of the different characteristics of accounting transparency, the influence of family control mainly includes the characteristics of a proportion of control, control access to and control implementation and control of the expression. The full text altogether includes five parts. The first part is the introduction of the family business, development, change the objective situation and significance, as well as the construction of this article research mentality and the method. The second part is from the angle of the definition of family enterprises, the family business agency problem and the impact of family enterprise control right’s characteristics reviewed and summarized Domestic and foreign literature. The third part mainly is the theoretical analysis of family business control right’s characteristics and accounting transparency. The third part is to analyze the theory of the research topic of this paper, first of all is the introduction of other scholars on the family business definition and the how the definition of family business. Secondly, it discusses the agency theory of the basic content and the signal transmission theory, finally, the agency theory and signaling theory of family enterprise information transparency. The fourth part is empirical research about family enterprise control right’s characteristics and accounting transparency, which is the core of this paper. On the basis of third part, we proposed hypothesis, build the model and select the sample and tested hypothesis. The fifth part is the conclusion of this paper, suggestions and shortcomings. This part of research results of the thesis are summarized, and according to the conclusion, the author tries to put forward to have the practical feasibility of the proposal, Finally this paper also lists the possible defects in the research process, also illustrates the limitations of the research results in this paper.We draw the following conclusions:(1) through the IPO listed directly method to obtain the control in the family business of the accounting transparency more high than indirect method to obtain the control;(2) Pyramids and cross-holdings and other holdings approach will reduce the company’s accounting transparency;(3) Control over the proportion of family listed company of the accounting transparency is high accounting transparency with control increase, after reaching a certain proportion, the transparency of information will be decreased with the increase of the proportion of control, their relationship is inverted "U" relationship;(4)The Board serves as general manager will reduce the accounting transparency.The main contribution of this paper lies in the following two aspects:(1) Family business as a special kind of enterprises in the private enterprise, the family enterprise of the characteristics of the control right to study, enriches the theoretical research of family enterprises, this paper is from a study of the family business, especially accounting transparency of family enterprises, provides a new direction for the research of family enterprises;(2) The earnings aggressiveness and earnings smoothness on the transparency of accounting information of the family to measure, researchers are using or borrowed from other agencies issued corporate transparency scoring or is ranking to measure the transparency of the enterprise information, and the improvement of the accounting information transparency measure method, enrich the surplus earnings aggressiveness and the smoothness of the transparency of accounting information measure in the field of research.