Familial altruism and reputation risk: evidence from China
China Finance Review International
ISSN: 2044-1398
Article publication date: 1 April 2021
Issue publication date: 20 October 2021
Abstract
Purpose
The authors study the effects of altruism and intention for succession on family firm's reputation risk-taking behaviors in Chinese publicly listed companies.
Design/methodology/approach
The authors use earnings management as a proxy for reputation risk in family firms, and hand-collected relationship between family members to measure the closeness of incumbent family members and their potential successors as a proxy for the altruistic degree.
Findings
Results show that, in developing countries like China, familial altruism in family firms with succession plans, which does not reduce the practice of earnings management, should be considered by practitioners while detecting it.
Originality/value
The hand collected data are very unique; the authors have focused on the relationship between incumbents and successors and the authors define their closeness by using genes shared between them.
Keywords
Citation
Fang, H.“., Shi, Y. and Wu, Z. (2021), "Familial altruism and reputation risk: evidence from China", China Finance Review International, Vol. 11 No. 4, pp. 437-448. https://doi.org/10.1108/CFRI-01-2021-0016
Publisher
:Emerald Publishing Limited
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