Whether family ownership affects the relationship between CSR and EM: evidence from Chinese listed firms

Rahman, Jahidur Md; Zheng, Xinying

doi:10.1108/jfbm-03-2022-0030

Cited by 16 publications

(19 citation statements)

References 31 publications

(103 reference statements)

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“…According to Gomez-Mejia et al (2007), in family businesses, managers and owners are more oriented toward making decisions that are not necessarily influenced by profit maximization dynamics. Family firms unlike non-family firms, which reason exclusively in consideration of the greater profit to be obtained, are driven to make strategic investment decisions which maximize the utility of the family rather than the economic value of the firm (Berrone et al, 2012;Rahman & Zheng, 2022). The reason is twofold.…”

Section: Esg Performance and The Company's Stock Price Of Family Firmmentioning

confidence: 99%

ESG Score and Market Value: The Role of the Family Firm Evidence from the Italian Listed Market

Bifulco,

Tiscini

2024

JMS

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In recent years, environmental, social, and governance (ESG) practices and disclosure has become a critical component of corporate finance and accounting. Indeed, increasingly, companies seek to demonstrate their accountability to the environment and society in order to meet the expectations of different stakeholders interested in ESG performance (Garcia-Sanchez & Garcia-Sanchez, 2020). Customers, regulators, employees, suppliers, social and activist groups, media and lenders are all potential stakeholders in sustainability accountability (Arif et al., 2021; Camilleri, 2015; Sajjad et al., 2020). Nevertheless, the shareholders, institutional investors and individuals, looking to invest their money in firms with sustainable finance goals and high levels of ESG performance (Lourenço et al., 2014). Companies are supposed to make and disclose sustainable initiatives in organizational decisions (Garcia-Sanchez et al., 2014) and managers convey the focus of their efforts towards a more sustainable environment and society paying much attention to ESG indicators (Broadstock et al., 2019). This paper investigates the value of ESG score for family firms (FF) and non-family firms (NFF). Stemming from previous studies (Martínez-Ferrero & Frías-Aceituno, 2015), ESG performance in family business context is still unexplored. Indeed, most of the scholars have focused their effort on exploring the adoption of FF’s non-financial disclosure while, to the best of our knowledge, no one has investigated the effect of the type of firm (family or non-family) in the relationship between non-financial performance (ESG) and financial performance. The results of the analyzes demonstrate that there is no significant relationship between non-financial performance (ESG performance) and the value of companies. Indeed, for both the hypotheses there is just a positive but non-significant correlation. This evidence was verified for both FF and NFF panel.

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Section: Esg Performance and The Company's Stock Price Of Family Firmmentioning

confidence: 99%

ESG Score and Market Value: The Role of the Family Firm Evidence from the Italian Listed Market

Bifulco,

Tiscini

2024

JMS

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“…The average citation frequency of the articles included is below 50, with 12 out of the 22 articles. Two articles were not cited in other articles at all [62,69].…”

Section: Descriptive Statisticsmentioning

confidence: 99%

“…Seven articles used other methods to measure the performance. For example: Wang and Kangtao [71] used the China Securities Market and Accounting Research Index, whereas Sial et al [13] used the RKS ranking, and Rahman and Zheng [69] measured the performance through the unweighted scoring method.…”

Section: Chen Andmentioning

confidence: 99%

What Earnings Management Has to Do with Corporate Social Responsibility

Meyer,

Dutzi

2024

Sustainability

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With the continuing rise of attention towards societal challenges like, e.g., climate change, Corporate Social Responsibility (CSR) becomes an increasingly important topic for companies. While there is no question that CSR activities are on the rise, the connection towards Earnings Management in companies is less clear. Therefore, this research paper not only aims to provide an up-to-date picture on the literature addressing this interconnection, but also provides a profound base for a more solid theoretical framework. Thus, it delivers a critical basis for further empirical analyses in this field. In order to illustrate this interconnection between those two topics, this paper presents an SLR analysis of articles published in the Chartered Association of Business Schools (CABS) or Australian Business Deans Council (ABDC), focusing on empirical analyses of CSR performance and Earnings Management. Overall, it can be stated that CSR performance has a negative influence on Accrual-Based Earnings Management, while findings on the influence on Real Earnings Management are contradicting. Furthermore, the relationship of CSR performance and Accrual-Based Earnings Management/Real Earnings Management is especially vague when the used methods are moderated by different variables such as family involvement or managerial entrenchment. While the connection between Accrual-Based Earnings Management and CSR performance is widely covered in the existing literature, the relationship between Real Earnings Management and CSR performance is clearly less outlined. This research paper makes key contributions to the existing literature, as it combines and structures results of conducted studies during the last ten years and elaborates on the differences on commonalities of the results. This analysis also suggests that other factors that possibly influence Earnings Management or CSR should be included in a future research model for upcoming analyses. It places the findings of earlier studies into the context of the Ethical Approach, creating a roadmap for the future.

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“…Compared to other shareholders, family firms are characterized by higher ownership concentration and active family members' involvement in the business (Faccio and Lang, 2002). Moreover, the family dominates the ownership and management of the firm which may affect the corporate decisions (Rahman and Zheng, 2023; Paiva et al ., 2016; Nekhili et al ., 2015). Along with these attributes, there are two opposing views regarding the impact of family ownership on earnings management.…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Do CEO duality and expertise affect earnings management behavior? The moderating effect of family ownership

Oussii

Klibi²

2023

JFBM

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PurposeThis study aims to analyze whether chief executive officer (CEO) duality and financial expertise are associated with earnings management to exceed thresholds. It also investigates to what extent and in what direction this association evolves when family ownership is introduced as a moderator variable.Design/methodology/approachBased on balanced panel data related to companies listed on the Tunis Stock Exchange, this study uses the logistic random-effect model to test research hypotheses during the period spanning from 2016 to 2021.FindingsThe results show that CEOs with financial expertise are less inclined to engage in earnings management to avoid reporting losses and earnings decline. The authors also provide evidence that CEO duality allows top management to be more powerful and, therefore, manage earnings to report positive profits and sustain recent performance. Furthermore, the authors find that family ownership moderates the association between CEO financial expertise, CEO duality and earnings management to exceed thresholds.Practical implicationsThe findings suggest to regulators involved in corporate governance and earnings management issues a reflection on CEO duality power, board effectiveness and family control. The study results are also of interest to auditors and board members as they provide a more in-depth understanding of the impact of CEOs' attributes and family control on financial reporting decisions.Originality/valueThis study extends past literature by providing new insights into the effect of CEO attributes and family control on earnings management practices in weak investor protection countries such as Tunisia.

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Whether family ownership affects the relationship between CSR and EM: evidence from Chinese listed firms

Cited by 16 publications

References 31 publications

ESG Score and Market Value: The Role of the Family Firm Evidence from the Italian Listed Market

ESG Score and Market Value: The Role of the Family Firm Evidence from the Italian Listed Market

What Earnings Management Has to Do with Corporate Social Responsibility

Do CEO duality and expertise affect earnings management behavior? The moderating effect of family ownership

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