Financial Reporting in Family Firms: A Socio-Emotional Wealth Approach Toward Information Quality

Calabró A., Cameran M., Campa D., Pettinicchio A., Financial reporting in family firms: a socioemotional wealth approach toward information quality, Journal of Small Business Management, Forthcoming

47 Pages Posted: 8 Oct 2020

See all articles by Andrea Calabrò

Andrea Calabrò

Witten Institute for Family Business - Witten/Herdecke University

Mara Cameran

Bocconi University - Department of Accounting

Domenico Campa

International University of Monaco (IUM)

Angela Kate Pettinicchio

SDA Bocconi School of Management

Date Written: August 10, 2020

Abstract

The strategic choices of family firms are influenced by economic and non-economic reference points. We contend that the preservation of the affect-related values a family derives from its ownership position in a firm (i.e., socio-emotional wealth – SEW) affects financial reporting quality and earnings management strategies. Using the voluntary International Financial Reporting Standards (IFRS) adoption by Italian unlisted family firms as a natural laboratory setting, we found that the level of SEW endowment impacts on financial reporting quality. Furthermore, we observe that IFRS adoption is associated with less accrual but higher real activity manipulation for increasing levels of SEW endowment.

Keywords: Family Firms, Socio-Emotional Wealth, Financial Reporting, Information Quality, IFRS

Suggested Citation

Calabrò, Andrea and Cameran, Mara and Campa, Domenico and Pettinicchio, Angela Kate, Financial Reporting in Family Firms: A Socio-Emotional Wealth Approach Toward Information Quality (August 10, 2020). Calabró A., Cameran M., Campa D., Pettinicchio A., Financial reporting in family firms: a socioemotional wealth approach toward information quality, Journal of Small Business Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3670611 or http://dx.doi.org/10.2139/ssrn.3670611

Andrea Calabrò

Witten Institute for Family Business - Witten/Herdecke University ( email )

Alfred-Herrausen-Straße 50
Witten, DE Dortmund 58448
Germany

HOME PAGE: http://www.uni-wh.de/universitaet/personenverzeichnis/details/show/Employee/calabro/

Mara Cameran

Bocconi University - Department of Accounting ( email )

Via Roentgen 1
Milan, 20136
Italy

Domenico Campa (Contact Author)

International University of Monaco (IUM) ( email )

16, rue Huber Clerissi
Building Stella
Monaco, Monaco MC-98000
Monaco
+37797986997 (Phone)

Angela Kate Pettinicchio

SDA Bocconi School of Management ( email )

Via Sarfatti 10
Milan, 20136
Italy

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