Earnings Management and Performance in Family-Controlled Firms:Evidence from an Emerging Economy

Mauricio Jara-Bertin and Jean Sepulveda ()
Authors registered in the RePEc Author Service: Mauricio Jara Bertin

No 1, Serie Working Papers from Universidad del Desarrollo, School of Business and Economics

Abstract: This study introduces an earnings management dimension to compute premanipulated accounting performance to determine whether family-controlled firms have higher performance relative to non-family-controlled firms. Using a premanipulated return on assets measure for Chilean firms dataset, we find that the premanipulated performance of familycontrolled firms is superior to that of non-family-controlled firms. We also show that the presence of institutional investors in the firm’s ownership structure has a positive influence on performance of family companies. The results suggest that earnings management behavior is not sufficient to explain the higher performance of family-controlled firms that has been reported in the literature.

Keywords: Family-controlled firms; earnings management; accounting performance. (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2014-11, Revised 2014-11
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://repositorio.udd.cl/bitstream/handle/11447/16/wp01.pdf First version, 2007 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:dsr:wpaper:01

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