Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5083548 | International Review of Economics & Finance | 2015 | 26 Pages |
Abstract
This study examines the relationship between family firms and earnings management by considering the influence of board independence. Based on a sample of 379 listed high-technology firms over 7Â years in Taiwan, we find that family firms are positively related to earnings management. Further, we find two interaction effects: (1) the proportion of independent directors interacted with family firms to reduce the earnings management, and (2) CEO duality interacted with family firms to increase the earnings management. Our findings suggest that board independence is important for an emerging market to mitigate the earnings management behavior carried out by family firms.
Related Topics
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Economics and Econometrics
Authors
Ching Wen Chi, Ken Hung, Hui Wen Cheng, Pang Tien Lieu,