Does family involvement explain why corporate social responsibility affects earnings management?

Liu, Mingzhi; Shi, Yulin; Wilson, Craig; Wu, Zhenyu

doi:10.1016/j.jbusres.2017.02.001

Cited by 127 publications

(133 citation statements)

References 32 publications

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“…This is so in the case of the chaebol firms. Liu, Shi, Wilson and Wu (2017) also confirmed Wang's (2006) findings. Their results showed that family firms were less likely to engage in accruals-based earnings management.…”

Section: Family Ownershipsupporting

confidence: 75%

Influence of Family Ownership on Earnings Quality

Kim

2019

AJBA

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Manuscript type: Research paper Research aims: This paper investigates how family ownership affects firm's earnings quality. The focus is on firms listed on the Korean Stock Exchange (KSE). Design/Methodology/Approach: This study uses panel data to classify family ownership into two categories: pure family ownership and ownership-control disparity (wedge) where wedge is further divided into 1) wedge ratio and 2) wedge multiplier. In addressing the category of ownership-control disparity, it is important to measure how much control rights are greater than ownership rights. Therefore, this study employs the wedge multiplier to overcome the limitation of not separating management control and ownership. Firms' earnings quality is tested by using four proxies proposed by Jonas and Blanchet (2000): 1) persistence, 2) value relevance, 3) conservatism, and 4) accruals quality. Research findings: This research finds family ownership to be positively associated with earnings quality, value-relevance and accruals quality. However, ownership-control disparity does not reduce the earnings quality. This finding is not consistent with previous studies. Thus, it is deduced that the controlling family shareholders of the chaebol firms have a dominant influence on firms which they invested in by using affiliated ownership. Significant ownership-control disparity is prevalent in chaebol firms, resulting in low earnings quality.

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Section: Family Ownershipsupporting

confidence: 75%

Influence of Family Ownership on Earnings Quality

Kim

2019

AJBA

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“…However, organizations cannot fully attain the intended objectives of their CSR initiatives without a motivated and skilled human resource. Then, the result of our study is compatible with the view that organizations must develop their human resource practices to enhance CSR practices (Milliman, ; Norton et al ., ; Paillé et al ., ; Ismail et al ., ; Jabbour and Jabbour, ; Donia and Sirsly, ; Gras‐Gil et al ., ; Liu et al ., ; McCarthy et al ., ). Many firms perceived the importance of adopting GHRM practices in developing their reputation in the business world.…”

Section: Discussionmentioning

confidence: 99%

The Role of Corporate Support for Employee Volunteering in Strengthening the Impact of Green Human Resource Management Practices on Corporate Social Responsibility in the Egyptian Firms

Kerdawy

2018

European Management Review

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Green human resource management (GHRM) and corporate social responsibility (CSR) have recently gained more attention in the business world. This study aims to investigate the role of corporate support for employee volunteering (CSEV) in strengthening the impact of GHRM on adopting CSR practices of the best 30 firms registered in EGX100 at the Egyptian stock exchange and engaged with CSR activities. Therefore, a conceptual framework was proposed to list theoretical concepts of GHRM, CSEV and CSR to form hypotheses. Data were collected from 326 respondents occupying the highest managerial positions in the studied firms. Using a structural equation model (SEM), the results indicate that both GHRM and CSEV influence positively on adopting CSR activities. Furthermore, CSEV plays a positive moderating role in strengthening the impact of GHRM on adopting CSR in the studied firms. These findings and their managerial implications were discussed in theory and practice.

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“…For instance, Liu, Shi, Wilson, and Wu (2017) noted that family firms have greater CSR performance as compared with non-family firms to preserve their noneconomic goals. For instance, Liu, Shi, Wilson, and Wu (2017) noted that family firms have greater CSR performance as compared with non-family firms to preserve their noneconomic goals.…”

mentioning

confidence: 99%

“…Regarding corporate social responsibility, differences between family and non-family firms have also been observed. For instance, Liu, Shi, Wilson, and Wu (2017) noted that family firms have greater CSR performance as compared with non-family firms to preserve their noneconomic goals. In contrast, El Ghoul, Guedhami, Wang, and Kwok (2016) find a negative association of family control with CSR performance.…”

mentioning

confidence: 99%

Does family control explain why corporate social responsibility affects investment efficiency?

Shahzad

Rehman²,

Nawaz

et al. 2018

Corp Soc Responsibility Env

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Drawing on stakeholder and socioemotional wealth theories, we empirically examine the influence of corporate social responsibility performance on investment efficiency in family-controlled businesses versus non-family-controlled businesses. Our panel dataset consists of 190 Pakistani firms listed on the Pakistan Stock Exchange over the period of 2007-2016. We use feasible generalized least square regression for model estimation. Our results suggest that firms with higher corporate social responsibility performance invest efficiently compared with firms with lower corporate social responsibility performance. Furthermore, the impact of corporate social responsibility performance on investment efficiency is higher in the family firms. The results suggest that family-controlled businesses are more willing to engage in social responsibility activities to achieve their non-economic goals, i.e. family image and trans-generational control. Overall, our results indicate that corporate social responsibility is beneficial for the organization, and its implication is more fruitful in the context of family-controlled businesses.

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Does family involvement explain why corporate social responsibility affects earnings management?

Cited by 127 publications

References 32 publications

Influence of Family Ownership on Earnings Quality

Influence of Family Ownership on Earnings Quality

The Role of Corporate Support for Employee Volunteering in Strengthening the Impact of Green Human Resource Management Practices on Corporate Social Responsibility in the Egyptian Firms

Does family control explain why corporate social responsibility affects investment efficiency?

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