Succession of Family Firms and Accounting Conservatism ()
ABSTRACT
Using data of listed family firms and based on the
multivariable regression model, this paper studies the changes in the quality
of accounting information of family firms during the succession period as well
as the regulating effect of successor’ characteristic variables—educational
level on the relation between succession and accounting conservatism. The
results show: The succession of family firms will improve the level of
accounting conservatism, suggesting that after the succession, the leader’s
personal authority and social capital declined, and the information disclosure
level of the firm tends to be conservative; besides, the successors’ personal
qualities, particularly the educational and professional background will have a
significant impact on the accounting conservatism after taking over the
corporate. It can be seen that as a special stage, the succession will affect
the accounting information disclosure policy of family firms, and it shows
strong heterogeneity with the succession.
Share and Cite:
Chen, Y. (2019) Succession of Family Firms and Accounting Conservatism.
Modern Economy,
10, 298-310. doi:
10.4236/me.2019.101020.