Informativeness of accounting earnings in family firms

Informativeness of accounting earnings in family firms

This work examines the relationship between the family control and informativeness of accounting earnings in listed non-financial Spanish companies between 1997 and 2003. The results reveal a negative relationship between the family nature of the controlling shareholder and the credibility of accoun...

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Bibliographic Details
Published in:Cuadernos de gestión Vol. 9; no. 2; pp. 17 - 30
Main Authors: Bona Sánchez, Carolina, Pérez Alemán, Jerónimo, Santana Martín, Domingo Javier
Format: Journal Article
Language:English
Spanish
Published: Universidad del País Vasco (UPV/EHU) 01-01-2009
Subjects:
Family firm
informativeness
private benefits
reputation
Online Access:Get full text
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Summary:This work examines the relationship between the family control and informativeness of accounting earnings in listed non-financial Spanish companies between 1997 and 2003. The results reveal a negative relationship between the family nature of the controlling shareholder and the credibility of accounting information. Moreover, as the level of voting rights in the hands of the family ultimate owner increases, the informativeness of earnings decreases. Only in family firms where the CEO is hired, the family nature affects positively on the informativeness of accounting earnings.
ISSN:1131-6837
1988-2157
DOI:10.5295/cdg.19091cb