Professionalisation of Family Firms and Accounting Function: Empirical Evidence

Robert Rieg, Dobroszek Justyna and Zarzycka Ewelina
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Dobroszek Justyna: University of Lodz, Faculty of Management, Jana Matejki 22/26, 90-237 Lodz, Poland
Zarzycka Ewelina: University of Lodz, Faculty of Management, Jana Matejki 22/26, 90-237 Lodz, Poland

Central European Economic Journal, 2022, vol. 9, issue 56, 113-131

Abstract: An increasing influence of families in firms is associated with lower professionalisation. A less professionalized firm might not be able to exploit the benefits of elaborate accounting functions that are fundamental for effective decision-making and control. Yet, it is unclear to date if higher family influence leads to less differentiated and professionalized accounting functions and hence less effective decision-making and control. We test this proposition based on survey data with Bayesian regressions and interaction effects. We find evidence that the impact of family on professionalisation is particularly pronounced in smaller firms, and the effect decreases with the firm's size. This indicates that family influence and professionalisation have more significant impact on the use of accounting instruments and less impact on the differentiaiton of accounting functions, except for smaller family firms.

Keywords: accounting function; empirical evidence; family firms; financial accounting; management accounting (search for similar items in EconPapers)
JEL-codes: M21 M41 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ceuecj:v:9:y:2022:i:56:p:113-131:n:5

DOI: 10.2478/ceej-2022-0008

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