Conservatism and Equity Ownership of the Founding Family

• Main Authors: CHEN, Shuping, CHEN, Xia, CHENG, Qiang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: Family firms; conservatism; family ownership; family control; Accounting; Asian Studies; Corporate Finance; Human Resources Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/1077; https://ink.library.smu.edu.sg/context/soa_research/article/2076/viewcontent/SSRN_id2273327.pdf
• Institution: Singapore Management University

We investigate the impact of founding family ownership on accounting conservatism. Family ownership is characterised by large, under-diversified equity stake and long investment horizon. These features give family owners both the incentives and the ability to implement conservative financial reporti...