Family ownership, family identity of CEO, and accounting conservatism: Evidence from Taiwan

Hsu, H.; Tsao, S.; Lin, C.

doi:10.1080/01559982.2021.1957542

Family ownership, family identity of CEO, and accounting conservatism: Evidence from Taiwan

Hsu, H.; Tsao, S.; Lin, C.

Authors

Dr Gary Hsu hwa-hsien.hsu@durham.ac.uk
Associate Professor

S. Tsao

C. Lin

Abstract

This study investigates how variations in family ownership configurations and family identity of the CEO affect family firms’ accounting conservatism in the East Asian economy, Taiwan. To address this objective, this study extends the traditional agency perspective and employs a socioemotional wealth framework. Findings document that family ownership is positively associated with family firms’ accounting conservatism, whereas the degree of disparity between family cash flow and voting rights is negatively related to accounting conservatism. Additionally, family firms with a founder CEO are more likely to report conservatively than those with a descendent CEO. Our study expands the growing literature on how family owners’ corporate governance features affect financial reporting decisions.

Citation

Hsu, H., Tsao, S., & Lin, C. (2022). Family ownership, family identity of CEO, and accounting conservatism: Evidence from Taiwan. Accounting Forum, 46(4), 315-343. https://doi.org/10.1080/01559982.2021.1957542

Journal Article Type	Article
Acceptance Date	Jun 15, 2021
Online Publication Date	Aug 27, 2021
Publication Date	2022
Deposit Date	Jul 19, 2021
Publicly Available Date	Feb 27, 2023
Journal	Accounting Forum
Print ISSN	0155-9982
Electronic ISSN	1467-6303
Publisher	Taylor and Francis Group
Peer Reviewed	Peer Reviewed
Volume	46
Issue	4
Pages	315-343
DOI	https://doi.org/10.1080/01559982.2021.1957542
Public URL	https://durham-repository.worktribe.com/output/1271830

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Publisher Licence URL
http://creativecommons.org/licenses/by-nc/4.0/

Copyright Statement
This is an Accepted Manuscript version of the following article, accepted for publication in Accounting Forum. Hsu, H., Tsao, S. & Lin, C. (2022). Family ownership, family identity of CEO, and accounting conservatism: Evidence from Taiwan. Accounting Forum 46(4): 315-343. It is deposited under the terms of the Creative Commons Attribution-NonCommercial License (http://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited.