The Effect of Ownership Structure on Disclosure Quality and Credit Ratings in Family Firms: The Moderating Role of Auditor Choice

2021 ◽  
pp. 089448652110578
Author(s):  
Jengfang Chen ◽  
Ni-Yun Chen ◽  
Liyu He ◽  
Chris Patel
Keyword(s):  
Family Firms ◽  
Negative Impact ◽  
Credit Ratings ◽  
Disclosure Quality ◽  
Auditor Choice ◽  
Big 4 ◽  
Using Data ◽  
Firm Owners ◽  
Moderating Role

Despite the substantial degree of heterogeneity within family firms, little is known about how their heterogeneity affects firm behavior and the implication for the shareholder–debtholder agency problem. Our study contributes to the literature by examining whether family firms with a higher level of control-ownership divergence would disclose less information and whether Big 4 auditors play a moderating role in mitigating the negative impact of control-ownership divergence on disclosure quality resulting in improved credit ratings. Using data from the emerging economy of Taiwan, we provide support for our three hypotheses. Our contributions will interest family firm owners, researchers, auditors, and policymakers.

Birth mode of family firms, family entering time and R&D investment: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zulfiqar ◽  
Shihua Chen ◽  
Muhammad Usman Yousaf
Keyword(s):  
Agency Theory ◽  
Family Firms ◽  
Family Firm ◽  
Research Database ◽  
Content Type ◽  
Firm Birth ◽  
The Relationship ◽  
D Investment ◽  
Moderating Role

PurposeOn the basis of behavioural agency theory and resource-based view, this study investigates the influence of family firm birth mode (i.e. indirect-established or direct-established), family entering time on R&D investment and the moderating role of the family entering time on the relationship between birth mode and R&D investment.Design/methodology/approachThe authors collected 2,990 firm-year observations from family firms listed on A-share in China from 2008 to 2016 in the China Stock Market and Accounting Research database. They used pooled regression for data analysis and Tobit regression for robustness checks.FindingsIndirect-established family firms show more inclined behaviour towards R&D investment than direct-established counterparts. Family entering time positively affects the R&D investment of family firms. Moreover, family entering time plays a significant moderating role in the relationship between family firm birth mode (i.e. indirect-established or direct-established) and R&D investment.Originality/valueTo the best of the authors’ knowledge, this work is a pioneering study that introduced the concept of family firm birth mode (i.e. indirect-established or direct-established) and family entering time. This work is novel because it differentiated family firms according to their birth modes, an approach which is a contribution to the existing literature of family firms. Moreover, the investigation of the moderating role of family entering time has also produced notable results that help understand the impact of family entering time on different types of family firms. The interpretation of outcomes according to behavioural agency theory also produced useful insights for future researchers as well as for policymakers.

Team Knowledge Diversity and Team Creativity: The Moderating Role of Status Inequality

2018 ◽  
Vol 46 (10) ◽  
pp. 1611-1622 ◽  
Author(s):  
Won-Woo Park ◽  
Joon Yeol Lew ◽  
Eun Kyung Lee
Keyword(s):  
Team Creativity ◽  
Team Members ◽  
Task Knowledge ◽  
Knowledge Diversity ◽  
Status Inequality ◽  
Using Data ◽  
Organizational Tenure ◽  
The Relationship ◽  
Moderating Role

We examined the relationship between team task knowledge diversity and team creativity, and the moderating role of team status inequality, with a focus on organizational tenure and rank inequality. By adopting an input–process–output framework, we hypothesized that teams would achieve high levels of creativity when they have a large pool of task-relevant expertise that is differentiated and specialized among team members, but the relationship would be weakened when team members have different statuses. We tested our hypotheses using data from 325 teams of employees at 10 companies in South Korea. Results showed that task knowledge diversity was positively associated with team creativity and a team's status inequality in terms of organizational tenure moderated the relationship in a negative way. Our findings contribute to the literature on team creativity by providing new insights regarding how status inequality, which is almost ubiquitous in workplaces, plays a role in a dynamic team process for creativity.

scholarly journals The Moderating Role of Dividend Policy on The Influence of Liquidity, Profitability, Leverage, and Investment Opportunity Set Against Stock Return Registered in The Jakarta Islamic Index

2020 ◽  
Vol 35 (2) ◽  
pp. 188
Author(s):  
Nailul Mufidah ◽  
Agus Sucipto
Keyword(s):  
Stock Return ◽  
Dividend Policy ◽  
Negative Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Investment Opportunity ◽  
Service Companies ◽  
Investment Opportunity Set ◽  
Moderating Role

<p>Stock return is an advantage expected by the investor in the latter days to the number of funds he/she has invested. There are two factors that affect the stock return, namely external and internal factors. The purpose of this study is to analyze the moderating role of dividend policy in the relationship between liquidity, profitability, leverage, and investment opportunity set against the stock return. This research uses a descriptive quantitative method with the population is service companies registered in the Jakarta Islamic Index for 2014-2018 periods. By implementing a purposive sampling technique, this study ended-up with 7 service companies as a sample.  Moreover, data analysis is processed with partial least square analysis techniques using the Application WarpPLS 6.0. The results showed that liquidity has significant negative impact on the stock return, profitability and investment opportunity set significantly positively affect the stock return, and leverage has no significant effect on stock return. While the dividend policy strengthens the liquidity relationship to stock return, the dividend policy weakens the leverage relation to the stock return, otherwise, the dividend policy is unable to moderate the profitability relationship and investment opportunity set against the stock return.</p>

Family ownership and cooperative R&D: the moderating effect of political ties

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Dong ◽  
Xiao Wang ◽  
Jiawen Chen
Keyword(s):  
Family Firms ◽  
Family Ownership ◽  
Content Type ◽  
Political Ties ◽  
Wealth Concentration ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Ability And Willingness

Purpose This study aims to investigate the impact of family ownership on cooperative research and development (R&D). Drawing on the ability and willingness paradox framework in family business research, the authors suggest that family ownership influences cooperative R&D via two opposing mechanisms: power concentration and wealth concentration. It also deepens the current understanding of the boundary conditions of informal institutions for the impact of family ownership on cooperative R&D by investigating the moderating role of political ties. Design/methodology/approach The authors analyze a panel of 610 Chinese manufacturing family firms and 2,127 firm-year observations from 2009 to 2017. Fixed effects regression analysis is used to test the hypotheses, with the two-stage Heckman model to address sample selection bias. Findings The research findings indicate that family ownership has an inverted U-shaped relationship with cooperative R&D and political ties moderate the relationship in such a way that the inverted U-shaped relationship will be steeper in firms with more political ties than in firms with fewer political ties. Practical implications Family ownership influences firms’ cooperative R&D through the positive effect of power concentration and the negative effect of wealth concentration. Family owners should, therefore, take advantage of concentrated power, for instance, by adapting quickly and committing sufficient resources to cooperative R&D opportunities, while controlling path-dependent relationship development caused by concentrated family wealth. The effect of political ties on the relationship between family ownership and cooperative R&D is found to be a double-edged sword. Originality/value This study extends the ability and willingness paradox framework and provides novel insights into cooperative R&D in family businesses by integrating power concentration and wealth concentration associated with family ownership. Moreover, this study provides a contingency perspective and introduces the moderating role of political ties in shaping cooperative R&D in family firms.

Exploring the relationship between employee engagement and its antecedents: the moderating role of smartphone use

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sheng-Wei Lin ◽  
Yuan-Hung Liu ◽  
Eugenia Y. Huang
Keyword(s):  
Organizational Communication ◽  
Employee Engagement ◽  
Online Survey ◽  
Negative Impact ◽  
Equation Modeling ◽  
Indicator Method ◽  
Content Type ◽  
Smartphone Use ◽  
Moderating Role

PurposeThis study empirically verified employee engagement (EE) as an outcome of organizational communication and confirmed that the formation of EE is strengthened when smartphone use (SU) is at a higher level.Design/methodology/approachA quantitative approach was used in this research, whereby 408 valid samples were collected with an online survey. The hypotheses of direct effects were tested using the structural equation modeling (SEM) procedure, and the moderating effects were tested using the unconstrained product indicator method and the PROCESS macro.FindingsThe results showed that EE was significantly influenced by person–organizationvalue fit (POVF), transformational leadership (TFL) and job autonomy (JA), and the effects of POVF and TFL were moderated significantly by SU. Although the influence of social support (SS) on EE was insignificant in the full model, SU moderated the effect of SS. The evidence also showed that work–family conflict (WFC) had no negative impact on EE.Research limitations/implicationsThe participants of this study were restricted to a local area.Practical implicationsOrganizations should develop job designs via two-way communication to bring up EE and SU can facilitate the process.Originality/valuePrevious research has identified EE as an outcome of organizational communication, but this concept has not yet been empirically verified. This research provides evidence to verify the above-mentioned concept and additionally confirms the moderating role of SU.

Restaurant Employee Service Sabotage and Customer Deviant Behaviors: The Moderating Role of Corporate Reputation

2020 ◽  
Vol 44 (7) ◽  
pp. 1126-1152
Author(s):  
Hsin-Hui Hu “Sunny” Hu ◽  
Hung-Sheng “Herman” Lai ◽  
Brian King
Keyword(s):  
Corporate Reputation ◽  
Relational Quality ◽  
Deviant Behaviors ◽  
Mediating Role ◽  
Service Sabotage ◽  
Using Data ◽  
Hospitality Employee ◽  
The Relationship ◽  
Moderating Role

This article provides a timely exploration of the relationship between hospitality employee service sabotage and customer deviant behaviors in Taiwan. The authors also examine the mediating role of relational quality and the moderating role of corporate reputation. The proposed research framework was tested using data from 226 customers of casual dining restaurants who responded to a questionnaire-based survey that was administered in northern Taiwan. The results indicate that employee service sabotage is positively related to customer deviant behaviors and potentially increases the incidence of the latter. Moreover, the relationship between employee service sabotage and customer deviant behaviors is mediated by relational quality, including satisfaction and commitment. It was found that the relationship between employee service sabotage and customer deviant behaviors is negatively moderated by corporate reputation. Employee service sabotage has less effect on customer deviant behaviors when customers perceive corporate reputation more positively. The study contributes to knowledge by proposing an empirically developed and tested conceptual model that offers an enhanced understanding of the relationship between employee service sabotage and customer deviant behaviors.

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