Research On The Impact Of Chinese Family Firms’ Inheritance To Accounting Conservatism

Because of its special structure, Family enterprises has been favored by the attention of academia.Family business, which is linked by “blood relationship”, lays much emphasis on “family culture”. family businesses through the stage of rapid development in our country, now is faced with the problem of inheritance, the success of inheritance affects the future development of family enterprises, and therefore,family business succession gradually be taken seriously.By the combination of theoretical and empirical research, also based on principal-agent theory, resource dependence theory and the social capital theory, this paper carries out researches on following aspects including the influence of family business inheritance on accounting conservatism, the effect of the political connection of founder and the effect of separating extent of ownership and the controlling right in family business to the regulation of family business inheritance and accounting conservatism. Finally in the further research, the researcher analyzes the influence of the personal traits of inheritor on accounting conservatism. According to the data of listed family businesses from 2009 to 2014, based on the regression analysis by least square method, the results are as follow:(1) family business inheritance may improve the accounting conservatism;(2) the political connection of founder has negative influence on the regulation of the relationship between family business inheritance and accounting conservatism;(3) the separating extent of ownership and controlling right does not have influence on the relationship between family business inheritance and accounting conservatism;(4) as for the inherited family business, heiress better prone to improve the accounting conservatism than male heirs do.;(5) the heirs with the working experience in other businesses tend to adopt radical accounting approaches instead of improving the accounting conservatism;(6) the heirs aged between 40 to 50 also tend to adopt radical accounting approaches instead of improving the accounting conservatism.(7) The heirs study abroad can help to improve the accounting conservatism.