Real earnings management in family firms: evidence from Chinese listed firms

2018 ◽  
Vol 10 (2) ◽  
pp. 77 ◽  
Author(s):  
Xi Tian ◽  
Tao Yang ◽  
T. Robert Yu
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Real Earnings Management ◽  
Listed Firms

Real earnings management in family firms: evidence from Chinese listed firms

2018 ◽  
Vol 10 (2) ◽  
pp. 77
Author(s):  
Xi Tian ◽  
T. Robert Yu ◽  
Tao Yang
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Real Earnings Management ◽  
Listed Firms

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 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.

Earnings Management and Corporate Governance in Family Firms

2019 ◽  
pp. 127-153
Author(s):  
Elisabete Vieira ◽  
Mara Madaleno
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Family Firms ◽  
Management Practices ◽  
Corporate Board ◽  
Listed Firms ◽  
Big 4 ◽  
Ownership Effect ◽  
And Control

Earnings management and corporate governance relationships are examined for a sample of 49 Portuguese listed firms considering an unbalanced panel for the period 2002-2017, using panel corrected standard errors models and considering the family ownership effect. Empirical findings reveal that there is a positive relationship between corporate board independence and earnings management and that the presence of women on board decreases earnings management practices. Results are consistent with the hypothesis that earnings management practices are lower in family firms than in non-family firms. Size, being audited by the Big 4 companies, return on assets, loss, and the existence of an audit committee on board influence positively earnings management, but leverage, age, and ownership control are negatively related to earnings management. Results indicate that further auditing and control is necessary for Portuguese listed companies leading to strict recommendations to be followed by policymakers regarding control of these firms.

The jinx of real earnings management: evidence from inefficient investments and debt maturity structure in Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Umair Saeed Bhutta ◽  
Aws AlHares ◽  
Yasir Shahab ◽  
Adeel Tariq
Keyword(s):  
Earnings Management ◽  
Generalized Method Of Moments ◽  
Emerging Economy ◽  
Real Earnings Management ◽  
Investment Efficiency ◽  
Important Research ◽  
Short Term ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

PurposeThis study aims to investigate two important research questions. First, this research examines the impact of real earnings management on investment inefficiency of the non-financial listed firms in Pakistan. Second, this research further explores the moderating role of short-term debt on the nexus between real earnings management and investment inefficiency. This study attempts to highlight an important research problem i.e. the jinx of real earnings management from the context of an emerging economy.Design/methodology/approachThis study employs the data from non-financial listed firms in Pakistan over the period from 2008 to 2018. The study uses panel data methodologies with firm and year fixed-effects to examine the proposed hypotheses. The results are robust to the use of sensitivity analysis, different estimation techniques and endogeneity issues (using two-stage least squares (2SLS) and generalized method of moments (GMM) techniques).FindingsThe results of the research are twofold. First, consistent with the theoretical arguments, the findings reveal that real earnings management increases investment inefficiency and results in over-investments by the firms. Second, short-term debt attenuates the relationship between real earnings management and investment inefficiency. It implies that a higher level of short-term debt weakens the adverse effects of real earnings management on the investment efficiency of the firm.Originality/valueThis study offers original findings on the issues pertaining to the quality of accounting and financial reporting in an emerging economy like Pakistan, where the implementation of regulations is weak in the corporate world and management frequently exploits shareholders' wealth for the short-term benefits.

Accrual-based and Real Earnings Management Activities to Avoid Losses : Empirical Evidence on KOSPI and KOSDAQ Listed Firms

2015 ◽  
Vol 44 (6) ◽  
pp. 1539
Author(s):  
Jong-Il Park ◽  
Hyewon Paik ◽  
Seol hee Jung
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Real Earnings Management ◽  
Listed Firms
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