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Family Succession and Quality of Financial Information: Evidence from China

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  • Tzu-Ching Weng
  • Kai-Jui Hsu
  • Tzu-Hsuan Kuo

Abstract

It has been more than 30 years since China opened private enterprises in 1978. Family firms is a very common type of Chinese business. Family Succession have a significant economic impact on the Chinese capital market. The purpose of this study is to explore the relationship between Chinese family succession and the quality of financial information. This study samples the A shares listed in China capital market from 2008 to 2016 and finds that after the succession of Chinese family firms, the quality of financial information has generally increased. However, after a family company with political connection take over the succession of its descendants, it will inhibit its earnings management and maintain the quality of financial information. Â JEL classification numbers: G30, M41.

Suggested Citation

  • Tzu-Ching Weng & Kai-Jui Hsu & Tzu-Hsuan Kuo, 2023. "Family Succession and Quality of Financial Information: Evidence from China," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(3), pages 1-4.
    • Handle: RePEc:spt:admaec:v:13:y:2023:i:3:f:13_3_4
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    More about this item

    Keywords

    Â Family Succession; Quality of Financial Information; Political Connections.;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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