Familial Altruism and Reputation Risk: Evidence from China

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.

Department(s)

Business and Information Technology

Comments

Published online: 01 Apr 2021

Keywords and Phrases

Altruism; Family Firm; Reputation Risk; Succession

International Standard Serial Number (ISSN)

2044-1398

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2021 Emerald, All rights reserved.

Publication Date

20 Oct 2021

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