Family firms and the market's sensitivity to accruals quality
by Guy D. Fernando; Richard A. Schneible Jr.; SangHyun Suh
International Journal of Accounting and Finance (IJAF), Vol. 5, No. 2, 2015

Abstract: Prior research shows that family firms have better financial reporting quality compared to non-family firms. However, prior research also shows that the financial markets discount the value of family firm choices. In this paper, we show that even though family firms, on average, have better realised reporting quality as measured by accruals based measures, the market's reaction to poor earnings quality is more severe for family firms. Our findings will be important to family firm managers as they grapple with how best to communicate with financial market participants.

Online publication date: Sat, 19-Sep-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Accounting and Finance (IJAF):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com