The Study On The Influence Of Chinese Listed Family Firms Characteristics On Earnings Management

Earnings management refers to the use of accounting methods or transactions to change financial reports based on accounting standard,that reduced the quality of enterprise accounting information.The family firm is a kind of enterprise organization with a long history,which occupies a pivotal position in China's real economy.Compared to the non-family firms,family firms have the characteristics of the centralized control of the enterprise.Based on the above background,this paper investigates the impact of family firm characteristics on earnings management.And we further explore the impact of the independence of the board of directors,internal governance structure and external audit supervision on the relationship between the characteristics of the family business and earnings management.In this paper,we select family firms according to the following three characteristics of family firms..Firstly,the actual controller of the enterprise is the family.Then the family's shareholding ratio is more than 25%.Finally,two or more family members are in the enterprise executives.This definition passes the robustness test and does not bias the sample selecting.Through the research results,the earnings management of Chinese listed family firms is significantly higher than that of non-family firms,and the regression coefficient of characteristic variables of family firm is positive,which refers to the characteristics of the family firms have a significant positive impact on the earnings management of Chinese listed firms.The regression coefficient of the interaction between the characteristic variables of the family firm and the independent variables of the board of directors and the external audit variables is significantly negative.It means when the independence of the board of directors and the quality of the external audit improve,the impact of the characteristics of the Chinese listed family firm on earnings management will be weakened.The regression coefficient of the interaction between the characteristic variables of the family firm and the governing structural variables is significantly positive.It means when the chairman of the company is the CEO,the influence of the characteristics of Chinese listed family firms on earnings management will be strengthened.Finally,based on the above conclusions,we put forward a number of policies and suggestions to optimize the management of Chinese listed family firms.Firstly,strengthen the information disclosure of family firms.Secondly,promote the internal governance and development of family firms.Thirdly,improve the participation mechanism of independent directors in family firms.Fourth,strengthen the supervision of external audit of family firms.Fifth,assist family firms to complete intergenerational transmission.Sixth,further motivate the entrepreneurial spirit of family firms...