Earnings Management and Contest to the Control: An Analysis of European Family Firms
AbstractThis paper analyzes the influence of large shareholders on earnings management in family-owned firms using a sample of firms from 11 European countries. We consider how the contest to the control of the largest shareholder and the existence of a controlling coalition in family-owned firms affect earnings management in these firms. We find that increased contestability of the control of the largest shareholder reduces earnings management in family-owned firms. Our results also show that in firms in which the largest shareholder is a family, a second or third family shareholder increases discretionary accruals.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 9660.
Date of creation: 11 Jul 2008
Date of revision:
corporate control; discretionary accruals; earnings management; family firms;
Find related papers by JEL classification:
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ACC-2008-07-30 (Accounting & Auditing)
- NEP-ALL-2008-07-30 (All new papers)
- NEP-BEC-2008-07-30 (Business Economics)
- NEP-CFN-2008-07-30 (Corporate Finance)
- NEP-EEC-2008-07-30 (European Economics)
- NEP-LAB-2008-07-30 (Labour Economics)
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