This paper addresses the topic of family firms’ financial disclosure quality. Previous literature suggests that company’s size, as a form of visibility, moderates a firm’s earnings management practices. We analyze the relationship between earnings management and different forms of visibility, namely, media exposure, consumer proximity, invested capital and sales, by comparing family and non-family companies. We provide evidence that the forms of visibility taken into consideration have a different effect on a firm’s earnings quality. Furthermore, our results suggest that family businesses are less likely to resort to these unethical practices, especially in the presence of media exposure and proximity of the business to the consumer.
Visibilità dell'impresa e qualità degli utili
Giovanna Gavana;
2018-01-01
Abstract
This paper addresses the topic of family firms’ financial disclosure quality. Previous literature suggests that company’s size, as a form of visibility, moderates a firm’s earnings management practices. We analyze the relationship between earnings management and different forms of visibility, namely, media exposure, consumer proximity, invested capital and sales, by comparing family and non-family companies. We provide evidence that the forms of visibility taken into consideration have a different effect on a firm’s earnings quality. Furthermore, our results suggest that family businesses are less likely to resort to these unethical practices, especially in the presence of media exposure and proximity of the business to the consumer.
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