The effect of family ownership on accrual-based and real activities based earnings management: Evidence from the French context

Cherif, Zeineb Feki; Damak-Ayadi, Salma; Hamad, Saoussen Boujelben Ben

doi:10.24818/jamis.2020.02004

Cited by 10 publications

(6 citation statements)

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“…Overall, earnings management preference is inseparable from the company's characteristics, including the character of family or non-family entities as well as the company size. This study results can also explain earnings management practices in countries that have similar characteristics to family entities in Indonesia (Abdellatif et al, 2010;Achleitner et al, 2014;Chen et al, 2015;Klein, 2000;Untoro et al, 2017) or the characteristics that can be compared with those in Indonesia (Cherif et al, 2020).…”

Section: Resultsmentioning

confidence: 78%

“…Many family entities in France are large companies (Wang & Hagigi, 2019). A study by Cherif et al (2020) proves that family entities in France conduct a real form of earnings management. Large family entities in France choose the real approach because of the higher availability of company resources.…”

Section: Resultsmentioning

confidence: 99%

“…Various policies are determined for the welfare of the family (Cahyani & Sanjaya, 2014). Managers will utilize insider information to conduct the expropriation of minority shareholders through earnings management practices (Cherif et al, 2020;Tian et al, 2018). Chi et al (2015), Ding et al (2011), Margono et al (2019), and Paiva et al (2019 found that earnings management actions are more intense done by family entities compare to non-family entities.…”

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confidence: 99%

“…Masri (2018) and Tian et al (2018) proved that real approach intensity is smaller in the family entities than in the non-family entities. However, empirical evidence found that family firms also practice a real approach, consider that the practice is less threatening to the firm reputation (Cherif et al, 2020;Razzaque et al, 2016). According to Margono et al (2019) and Martin et al (2014), the family entities in Indonesia are more aggressive in conducting earnings management.…”

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confidence: 99%

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Earnings Management Practices of Family and Non-Family Entities

Purba

Umboh

2021

jamal

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NonkeluargaTujuan Utama -Tulisan ini bertujuan menganalis kecenderungan pemilihan praktik manajemen laba perusahaan keluarga/nonkeluarga Metode -Peneliti mengumpulkan bukti-bukti empiris atas perusahaan yang sahamnya telah tercatat pada Bursa Indonesia, setidaknya tahun 2017-2019. Model regresi logistik digunakan untuk menguji pilihan manajemen laba. Temuan Utama -Bukti empiris mengungkap bahwa mayoritas perusahaan -perusahaan di Indonesia adalah perusahaan keluarga. Lebih lanjut, studi ini membuktikan bahwa dibanding dengan perusahaan non keluarga, perusahaan keluarga lebih memilih manajemen laba akrual daripada manajemen laba ril. Akan tetapi ketika ukuran perusahaan meningkat, perusahaan keluarga mulai beralih kepada pilihan manajemen laba ril. Implikasi Teori dan Kebijakan -Hasil pengujian mendukung bahwa teori socioemotional wealth menjelaskan dengan baik praktik manajemen laba dari bisnis keluarga dan nonkeluarga. Hasil studi bermanfaat bagi auditor dalam menilai risiko salah saji laporan keuangan. Kebaharuan Penelitian -Sejauh diketahui penulis riset mengenai pilihan manajemen laba belum dilakukan di negara-negara berkembang yang didominasi oleh perusahaan keluarga.

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Section: Resultsmentioning

confidence: 78%

Section: Resultsmentioning

confidence: 99%

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confidence: 99%

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confidence: 99%

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Earnings Management Practices of Family and Non-Family Entities

Purba

Umboh

2021

jamal

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“…Purba and Umboh (2021), for example, found that family businesses in Indonesia tend to prefer accrual EM because EM accruals do not incur costs and family companies have more freedom to do so. However, findings made by Cherif et al (2020) and Razzaque et al (2016) showed that companies chose a real approach because the probability of being detected is smaller and it is more flexible in terms of timing of execution.…”

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confidence: 99%

Analyzing earnings management preferences from business strategies

Purba

Fransisca

Joshi

2021

JFRA

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Purpose This study aims to examine the preference for earnings management (EM) strategies according to business strategies, namely, cost leadership strategies and differentiation strategies, Design/methodology/approach This study analyzed 262 samples of manufacturing and service companies listed on the Indonesia Stock Exchange for the period 2019. Logistic regression analysis is used to test the company’s EM strategy preferences based on the applied business strategy. Findings The results prove that business strategy has a significant effect on EM strategy preferences. Companies that implement a cost leadership strategy tend to use an accrual form of EM rather than a real form of EM. Conversely, companies that implement a differentiation strategy tend to use a real form of EM. Research limitations/implications Theoretically, this study confirms that contingency theory can explain EM practice preferences based on business strategy. Practically, this study helps auditors and financial statement analysts in assessing the quality of financial statements, as well as the risk of financial misstatement based on the business strategy adopted by the companies. Originality/value Based on prior literature, research studies on the analysis of EM strategy preferences based on business strategy have been limited.

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Accruals, real earnings management, and CEO demographic attributes in emerging markets: Does concentration of family ownership count?

Al-Begali,

Phua

2023

Cogent Business & Management

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The effect of family ownership on accrual-based and real activities based earnings management: Evidence from the French context

Cited by 10 publications

References 0 publications

Earnings Management Practices of Family and Non-Family Entities

Earnings Management Practices of Family and Non-Family Entities

Analyzing earnings management preferences from business strategies

Accruals, real earnings management, and CEO demographic attributes in emerging markets: Does concentration of family ownership count?

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