Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/founding-family-ownership-and-earnings-quality-etmKvrT6I3
References (66)
-
J. Reynolds, Jere Francis (2000)
Does size matter? The influence of large clients on office-level auditor reporting decisionsJournal of Accounting and Economics, 30
-
Klein Klein (2002)
Audit Committee, Board of Director Characteristics, and Earnings ManagementJournal of Accounting & Economics, 33
-
J. Francis, Ryan LaFond, Per Olsson, K. Schipper (2005)
The market pricing of accruals qualityJournal of Accounting and Economics, 39
-
Healy Healy, Kaplan Kaplan (1985)
The Effect of Bonus Schemes on Accounting DecisionsJournal of Accounting & Economics, 7
-
April Klein (2002)
Audit Committee, Board of Director Characteristics, and Earnings ManagementSEIN Corporate Governance & Accountability eJournal
-
R. Ball, Ashok Robin, Joanna Wu (2000)
Accounting standards, the institutional environment and issuer incentives: Effect on timely loss recognition in ChinaAsia-Pacific Journal of Accounting & Economics, 7
-
H. DeAngelo, L. Deangelo (2000)
Controlling Stockholders and the Disciplinary Role of Corporate Payout Policy: A Study of the Times Mirror CompanyJournal of Financial Economics, 56
-
Sanford Grossman, O. Hart (1986)
The Costs and Benefits of Ownership: A Theory of Vertical and Lateral IntegrationJournal of Political Economy, 94
-
R. Ball, Lakshmanan Shivakumar (2005)
The Role of Accruals in Asymmetrically Timely Gain and Loss RecognitionChicago Booth: Accounting Research Center Research Paper Series
-
C. Leuz, D. Nanda, Peter Wysocki (2002)
Earnings Management and Investor Protection: An International ComparisonGlobal Business Issues eJournal
-
Sudipta Basu (1997)
The conservatism principle and the asymmetric timeliness of earningsJournal of Accounting and Economics, 24
-
E. Fama, M. Jensen (1983)
Separation of Ownership and ControlThe Journal of Law and Economics, 26
-
Ball Ball, Kothari Kothari, Robin Robin (2000)
The Effect of International Institutional Factors on Properties of Accounting EarningsJournal of Accounting & Economics, 29
-
H. Chung, Sanjay Kallapur (2003)
Client Importance, Nonaudit Services, and Abnormal AccrualsAccounting review: A quarterly journal of the American Accounting Association, 78
-
P. Healy, Sok-Hyon Kang, K. Palepu (1987)
The effect of accounting procedure changes on CEOs' cash salary and bonus compensationJournal of Accounting and Economics, 9
-
R. Bowen, Shivaram Rajgopal, M. Venkatachalam (2005)
Accounting Discretion, Corporate Governance and Firm PerformanceEuropean Finance Association Meetings (EFA) (Archive)
-
B. Lev (2003)
Corporate Earnings: Facts and FictionJournal of Economic Perspectives, 17
-
Andrei Shleifer, Robert Vishny (1996)
A Survey of Corporate GovernanceOrganizations & Markets eJournal
-
Terry Warfield, J. Wild, Kenneth Wild (1995)
Managerial ownership, accounting choices, and informativeness of earningsJournal of Accounting and Economics, 20
-
Frank Gigler, T. Hemmer (2001)
Conservatism, Optimal Disclosure Policy, and the Timeliness of Financial ReportsThe Accounting Review, 76
-
Ronald Anderson, D. Reeb (2003)
Who Monitors the Family?IO: Firm Structure
-
Srinivasan Srinivasan (2005)
Consequences of Financial Reporting Failure for Outside Directors: Evidence from Accounting Restatements and Audit Committee MembersJournal of Accounting Research, 43
-
Robert Bushman, Abbie Smith (2001)
Financial Accounting Information and Corporate GovernanceJournal of Financial Abstracts eJournal
-
Burkart Burkart, Panunzi Panunzi, Shleifer Shleifer (2003)
Family FirmsThe Journal of Finance, 58
-
Shleifer Shleifer, Vishny Vishny (1997)
A Survey of Corporate GovernanceJournal of Finance, 52
-
Richard Frankel, Marilyn Johnson, Karen Nelson (2002)
The Relation between Auditors' Fees for Nonaudit Services and Earnings ManagementThe Accounting Review, 77
-
Jensen Jensen, Meckling Meckling (1976)
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership StructureJournal of Financial Economics, 3
-
Patricia Dechow, Ilia Dichev (2002)
The Quality of Accruals and Earnings: The Role of Accrual Estimation ErrorsThe Accounting Review, 77
-
R. Ball, Scott Keating, Christian Leuz, Gerhard Mueller, Christopher Nobes (1999)
The Effect of International Institutional Factors on Properties of Accounting EarningsS&P Global Market Intelligence Research Paper Series
-
M. Faccio, Larry Lang (2002)
The Ultimate Ownership of Western European CorporationsCorporate Finance: Governance
-
Bushman Bushman, Smith Smith (2001)
Financial Accounting Information and Corporate GovernanceJournal of Accounting & Economics, 32
-
R. Watts, J. Zimmerman (2006)
Positive Accounting Theory -
Agrawal (2005)
Corporate Governance and Accounting ScandalsJournal of Law and Economics, 48
-
In Praise of the Family Firm
The Economist, 338
-
Some Facts on Family‐owned Firms”
National Underwriter, 102
-
Q. Cheng, Terry Warfield, Minlei Ye (2004)
Equity Incentives and Earnings ManagementJournal of Accounting, Auditing & Finance, 26
-
Connie Becker, Mark Defond, J. Jiambalvo, K. Subramanyam (1998)
The Effect of Audit Quality on Earnings ManagementContemporary Accounting Research, 15
-
Barth Barth (1994)
Fair Value Accounting: Evidence from Investment Securities and Market Valuation of BanksThe Accounting Review, 69
-
Andrew Christie, J. Zimmerman (1991)
Efficient vs. Opportunistic Choice of Accounting Procedures: Corporate Control Contests -
Patricia Dechow, Richard Sloan, A. Sweeney (1994)
DETECTING EARNINGS MANAGEMENTAccounting review: A quarterly journal of the American Accounting Association, 70
-
Joseph Fan, T. Wong (2000)
Corporate Ownership Structure and the Informativeness of Accounting Earnings in East AsiaAFA 2001 New Orleans Meetings (Archive)
-
Weber Weber, Lavelle Lavelle, Lowry Lowry, Zellner Zellner, Barrent Barrent (November 10, 2003)
Family, IncBusinessWeek
-
J. Francis, K. Schipper, Linda Vincent (2005)
Earnings and dividend informativeness when cash flow rights are separated from voting rightsJournal of Accounting and Economics, 39
-
Ronald Anderson, D. Reeb (2003)
Founding-Family Ownership and Firm Performance: Evidence from the S&P 500Journal of Finance, 58
-
R. Ball, Ashok Robin, Joanna Wu (2000)
Incentives Versus Standards: Properties of Accounting Income in Four East Asian Countries, and Implications for Acceptance of IASChicago Booth Research Paper Series
-
Suraj Srinivasan (2004)
Consequences of Financial Reporting Failure for Outside Directors: Evidence from Accounting Restatements and Audit Committee MembersRisk Management
-
Ronald Anderson, S. Mansi, D. Reeb (2003)
Founding Family Ownership and the Agency Cost of DebtCorporate Finance: Valuation
-
Anup Agrawal, Sahiba Chadha (2003)
Corporate Governance and Accounting ScandalsSocial Science Research Network
-
Cheng Cheng, Warfield Warfield (2005)
Equity Incentives and Earnings ManagementThe Accounting Review, 80
-
R. Morck, Andrei Shleifer, Robert Vishny (1988)
Management Ownership and Market Valuation: An Empirical AnalysisJournal of Financial Economics, 20
-
W. Guay (2005)
Discussion of Ball and Shivakumar (2005): The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition -
Leuz Leuz, Nanda Nanda, Wysocki Wysocki (2003)
Earnings Management and Investor Protection: An International ComparisonJournal of Financial Economics, 69
-
Michael Jensen, W. Meckling (1976)
Theory of the Firm -
Ball Ball, Shivakumar Shivakumar (2005a)
Earnings Quality in U.K. Private Firms: Comparative Loss RecognitionJournal of Accounting & Economics, 38
-
Anderson (2003)
Founding Family Ownership and the Agency Cost of DebtJournal of Financial Economics, 68
-
Rafael Porta, Florencio López‐de‐Silanes, Andrei Shleifer, Robert Vishny (1996)
Law and FinanceJournal of Political Economy, 106
-
Mark Defond, J. Jiambalvo (1994)
Debt covenant violation and manipulation of accrualsJournal of Accounting and Economics, 17
-
R. Ball, Lakshmanan Shivakumar (2005)
EARNINGS QUALITY IN UK PRIVATE FIRMS: COMPARATIVE LOSS RECOGNITION TIMELINESSJournal of Accounting and Economics, 39
-
Faccio Faccio, Lang Lang (2002)
The Ultimate Ownership of Western European CorporationsJournal of Financial Economics, 66
-
David Aboody, Ron Kasznik (2000)
CEO stock option awards and the timing of corporate voluntary disclosuresJournal of Accounting and Economics, 29
-
H. White (1980)
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for HeteroskedasticityEconometrica, 48
-
Frank Heflin, Kenneth Shaw (2000)
Blockholder Ownership and Market LiquidityJournal of Financial and Quantitative Analysis, 35
-
J. Jones (1991)
Earnings Management During Import Relief InvestigationsJournal of Accounting Research, 29
-
Ball Ball, Robin Robin, Wu Wu (2003)
Incentives Versus Standards: Properties of Accounting Income in Four East Asian CountriesJournal of Accounting & Economics, 36
-
H. Demsetz, K. Lehn (1985)
The Structure of Corporate Ownership: Causes and ConsequencesJournal of Political Economy, 93
-
Andrei Shleifer, Robert Vishny (1986)
Large Shareholders and Corporate ControlJournal of Political Economy, 94
- Publisher
- Wiley
- Copyright
- Copyright © 2006 Wiley Subscription Services, Inc., A Wiley Company
- ISSN
- 0021-8456
- eISSN
- 1475-679X
- DOI
- 10.1111/j.1475-679X.2006.00213.x
- Publisher site
- See Article on Publisher Site
Abstract
ABSTRACT This study investigates the relation between founding family ownership and earnings quality using data from the Standard & Poor's 500 companies. Existing literature has documented that financial reporting is of higher quality when firms have stronger corporate governance mechanisms and when there is greater demand for quality financial reporting. I provide two competing theories of the effect of founding family ownership on the demand and supply of earnings quality: the entrenchment effect and the alignment effect. The empirical results show that, on average, founding family ownership is associated with higher earnings quality. In particular, I find consistent evidence that founding family ownership is associated with lower abnormal accruals, greater earnings informativeness, and less persistence of transitory loss components in earnings. In addition, the results suggest a nonlinear relation between family ownership and earnings quality.
Journal
Journal of Accounting Research – Wiley
Published: Jun 1, 2006