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Article Dans Une Revue Accounting in Europe Année : 2023

Family identification and earnings management in listed firms

Cédric Poretti
Carl Brousseau
  • Fonction : Auteur

Résumé

In this paper, we investigate the earnings management behavior of listed family firms holding the name of the family (eponymous FF). Specifically, we use a Swiss sample of 1,544 firm-year observations from 2006 to 2018 to examine the association of eponymous FF with accrual-based earnings management in general, and identify circumstances where this association does not hold. First, we find that, on average, eponymous FF exhibit less earnings management than non-FF. Second, we exploit a Swiss-specific option to voluntarily turn away from IFRS to local GAAP. Using a difference-in-differences approach, we find that eponymous FF exhibit higher levels of earnings management immediately after the switch. Finally, we show that eponymous FF exhibit higher earnings management when the family is directly involved in the board of directors or the managing board. Our findings provide a more nuanced understanding of the effects of family identification on earnings management incentives in listed firms.

Dates et versions

hal-04478576 , version 1 (26-02-2024)

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Cédric Poretti, Tiphaine Jérôme, Carl Brousseau. Family identification and earnings management in listed firms. Accounting in Europe, 2023, 20 (3), pp.339-369. ⟨10.1080/17449480.2023.2231964⟩. ⟨hal-04478576⟩

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