scholarly journals The influence of independence and compensation of the directors on family firms and real earnings management

2021 ◽  
Vol 9 (1) ◽  
pp. 1934977
Author(s):  
Adeeb Abdulwahab Alhebri ◽  
Shaker Dahan Al-Duais ◽  
Amal Mohammed Almasawa
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Real Earnings Management

Real Earnings Management and Accrual-based Earnings Management in Family Firms

2014 ◽  
Vol 23 (3) ◽  
pp. 431-461 ◽  
Author(s):  
Ann-Kristin Achleitner ◽  
Nina Günther ◽  
Christoph Kaserer ◽  
Gianfranco Siciliano
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Real Earnings Management

scholarly journals Is there any association between real earnings management and crash risk of stock price during uncertainty? An evidence from family-owned firms in an emerging economy

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Huma Fatima ◽  
Abdul Haque ◽  
Muhammad Usman
Keyword(s):  
Earnings Management ◽  
Stock Price ◽  
Family Firms ◽  
Research Work ◽  
Real Earnings Management ◽  
Crash Risk ◽  
Time Period ◽  
Academic Researchers ◽  
Family Based ◽  
Statistical Estimations

Abstract This research work intends to analyze the association between real earnings manipulation and stock price crash. Further, we also analyze the spillover outcome of the crash as a result of applying real earnings management. It is hypothesized that there is a positive and statistically significant association between real activities manipulation and crash risk. It is also assumed that this spillover outcome is more noticeable during uncertainty. By applying data of family firms for the time period 2005–2018, empirical results provide the proof that real manipulation has a significant impact on stock crash for a developing economy like Pakistan among family-based companies. This research work also gives a statistical insight that spillover outcome is more notable for firms facing uncertainty. Our statistical estimations are in support of the assumed hypotheses of the study. This study has very significant and practical implications for academic researchers, standard setters, and investors.

scholarly journals Reputasi perusahaan keluarga: Accrual dan real earnings management

2021 ◽  
Vol 10 (2) ◽  
pp. 265
Author(s):  
William Sebastian Tanusaputra ◽  
Rizky Eriandani
Keyword(s):  
Logistic Regression ◽  
Earnings Management ◽  
Family Firms ◽  
Stock Exchange ◽  
Corporate Image ◽  
Real Earnings Management ◽  
Financial Reports ◽  
The Family ◽  
Company Reputation ◽  
Negative Effect

This study examined the effect of earnings management on reputation in family firms listed on the Indonesia Stock Exchange (ISE). The data were collected from audited financial reports of companies listed on the Indonesia Stock Exchange for 2017-2019. The data were slected by using a purposive sampling towards 264 companies. The data of company reputation comes from the corporate image reward website, and they were analyzed using logistic regression. The results showed there is no effect of accrual earnings management (AEM) on the family firms’ reputation. On the contrary, real earnings management (REM) has a significant negative effect on family firms. This result implies that earnings manipulation by adjusting the company’s operations will result in a bad reputation.

Managerial ability and real earnings management in family firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adhitya Agri Putra ◽  
Nanda Fito Mela ◽  
Ferdy Putra
Keyword(s):  
Data Envelopment Analysis ◽  
Earnings Management ◽  
Family Firms ◽  
Random Effect ◽  
Real Earnings Management ◽  
Data Envelopment ◽  
Managerial Ability ◽  
Information Distortion ◽  
Content Type ◽  
The Family

Purpose This study aims to examine the effect of managerial ability on real earnings management (hereafter REM) in family firms. Design/methodology/approach The sample consists of 864 firms-years listed in the Indonesian Stock Exchange. REM is measured by abnormal activities. Managerial ability is measured by data envelopment analysis. Data analysis uses random-effect regression analysis. Findings Family firms reduce the possibility of higher ability managers to engage in REM. Compare to non-family firms, higher ability managers in family firms are more likely to engage in REM to improve future earnings. Research limitations/implications This research only uses efficiency score data envelopment analysis to measure managerial ability while the managerial ability is, by nature, multi-dimensional and unobservable. This research also does not find the role of professional Chief Executive Officer (hereafter CEO) in the family firms in REM behavior because does not consider the professional CEO motivation (e.g. compensation structure). Practical implications This research is expected to help family firms formulate managers' selection based on managerial ability. This research also is expected to help investors and creditors to put their funds in the family firms with higher ability managers that reduce earnings information distortion. Originality/value To the best of the author’s knowledge, this research is the first research that examines the managerial ability on REM in Indonesian family firms. This research also contributes to fil the findings gap in managerial ability and REM.

scholarly journals The influence of family board involvement on earnings management

2021 ◽  
Vol 18 (2) ◽  
pp. 106-123
Author(s):  
Fabio Franzoi ◽  
Mark Mietzner ◽  
Franziska Thelemann
Keyword(s):  
Earnings Management ◽  
Family Involvement ◽  
Family Firms ◽  
Management Practices ◽  
Real Earnings Management ◽  
Family Management ◽  
Family Ownership ◽  
Executive Board ◽  
Listed Firms ◽  
Founding Family

This study explores the influence of family ownership and family board involvement on earnings management in German-listed firms. We extend existing research by applying a more precise measurement of family involvement that offers new insights into a family’s effect on earnings management behaviour. Our models suggest that the degree of management involvement of families is a significant driver of earnings management, a factor disregarded so far in the literature. Furthermore, the distinction between founding family and family ownership should be carefully considered. Employing a sample of 278 firms from 2000-2013, we find that greater family management presence on the executive board is associated with more earnings-decreasing accrual-based earnings management practices and more real earnings management activities via discretionary expenses. This is viewed as less value-destroying REM activity to meet earning targets. Overall, German family firms seem to use their powerful positions as shareholders and executive board members to expropriate shareholders and manage earnings to meet targets while maintaining family wealth

scholarly journals The role of corporate governance in the relationships of family company with real earnings management

2018 ◽  
Vol 22 (1) ◽  
Author(s):  
Indah Masri
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Family Firms ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Performance Impact ◽  
The Family ◽  
Negative Effect

The purpose of this research was to determine the effect of family ownership on real earnings management with corporate governance as a moderation variable in this relationship. This research is also looking at the role of accrual earnings management as a substitute in the relationship accrual earnings management with real earnings management in a family company. This study uses data 61 manufacturing companies on the Indonesia Stock Exchange in the period 2010 to 2013. The research results according to which hypothesized that family firms tend to negatively affect with real earnings management. The role of corporate governance as strengthening internal oversight negative effect on family companies with real earnings management. The results also proved the existence of a relationship of substitution for family firms tend to be doing accrual earnings management than real earnings management. This is because on the one hand the motivation of control as a strong incentive to do accrual earnings management in the family company, while on the other hand, the family companies tend to dislike real earnings management for their negative performance impact.

Real earnings management in family firms: Evidence from an emerging economy

2016 ◽  
Vol 40 ◽  
pp. 237-250 ◽  
Author(s):  
Rushdi Md. Rezaur Razzaque ◽  
Muhammad Jahangir Ali ◽  
Paul R. Mather
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Emerging Economy ◽  
Real Earnings Management
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