The role of family management and family ownership in diversification: The case of family business groups

2012 ◽  
Vol 30 (3) ◽  
pp. 871-891 ◽  
Author(s):  
Hsi-Mei Chung
Keyword(s):  
Family Business ◽  
Business Groups ◽  
Family Management ◽  
Family Ownership ◽  
Family Business Groups

Auditor Appointment Strategy and Intragroup Value Transfers: Evidence From Family Business Groups

2021 ◽  
pp. 0148558X2199265
Author(s):  
Yan-Leung Cheung ◽  
In-Mu Haw ◽  
Weiqiang Tan ◽  
Wenming Wang
Keyword(s):  
Adverse Effect ◽  
Financial Reporting ◽  
Family Business ◽  
Business Groups ◽  
Divide And Conquer ◽  
Alternative Measure ◽  
Family Business Groups ◽  
Audit Effectiveness ◽  
Financial Reporting Comparability

Family business groups (FBGs) typically control several member firms and can hire a single auditor or multiple auditors to audit their member firms. This article examines what type of auditor appointment strategy constrains intragroup value transfers within FBGs. Analyzing related-party transactions (RPTs) within FBGs in Hong Kong, this study provides evidence that FBGs with multiple auditors undertake more intragroup value transfers than FBGs with a single auditor. However, the adverse effect of multiple-auditor appointments is mitigated by a stronger board and higher financial reporting comparability among member firms. Using an alternative measure of intragroup value transfers, we also find that the market perceives multiple-auditor appointments as impairing audit effectiveness. Overall, our findings offer the new insight that controlling families can exploit the appointment of multiple auditors as a “divide and conquer” strategy which undermines the monitoring role of auditors against intragroup value transfers, but stronger corporate governance of member firms can mitigate the adverse effect.

Family Business Groups around the World: Financing Advantages, Control Motivations, and Organizational Choices

2011 ◽  
Vol 24 (11) ◽  
pp. 3556-3600 ◽  
Author(s):  
Ronald W. Masulis ◽  
Peter Kien Pham ◽  
Jason Zein
Keyword(s):  
Family Business ◽  
Business Groups ◽  
The World ◽  
Family Business Groups

scholarly journals The Dynamics and Complexity of Family Business Groups

2018 ◽  
pp. 177-200 ◽  
Author(s):  
Kajari Mukherjee ◽  
Marita Rautiainen ◽  
Timo Pihkala ◽  
Peter Rosa
Keyword(s):  
Family Business ◽  
Business Groups ◽  
Family Business Groups
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