Couples’ Joint Holdings and Real Earnings Management

Hanyi Xu

doi:10.54691/bcpbm.v48i.5248

Authors

Hanyi Xu

DOI:

https://doi.org/10.54691/bcpbm.v48i.5248

Keywords:

Couples’ Joint Holdings, Real Earnings Management, Family Firms, Accounting Information Quality.

Abstract

The involvement of affinity in corporate governance will affect the strategic decision-making of enterprises. Based on the shareholding data of Chinese A-share-listed family firms from 2008 to 2021, this paper explores the impact of couples’ joint holdings on real earnings management. The study founds that compared with the family firm with a single shareholding of husband or wife, couples’ joint holdings positively affect real earnings management. Further analysis shows that in the case of poor company growth and two-job mergers, couples' joint holdings will exacerbate real earnings management; higher capital appropriation by major shareholders and higher management expense ratio contribute to the positive correlation between couples' joint holdings and real earnings management. This study has particular reference significance for the family firm to optimize the governance structure and improve accounting information quality under the husband-wife shared governance mode.

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