<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>An increasing influence of families in firms is associated with lower professionalisation. A less professionalized firm might not be able to exploit the benefits of elaborate accounting functions that are fundamental for effective decision-making and control. Yet, it is unclear to date if higher family influence leads to less differentiated and professionalized accounting functions and hence less effective decision-making and control. We test this proposition based on survey data with Bayesian regressions and interaction effects. We find evidence that the impact of family on professionalisation is particularly pronounced in smaller firms, and the effect decreases with the firm's size. This indicates that family influence and professionalisation have more significant impact on the use of accounting instruments and less impact on the differentiaiton of accounting functions, except for smaller family firms.</p>
</abstract>

An increasing influence of families in firms is associated with lower professionalisation. A less professionalized firm might not be able to exploit the benefits of elaborate accounting functions that are fundamental for effective decision-making and control. Yet, it is unclear to date if higher family influence leads to less differentiated and professionalized accounting functions and hence less effective decision-making and control. We test this proposition based on survey data with Bayesian regressions and interaction effects. We find evidence that the impact of family on professionalisation is particularly pronounced in smaller firms, and the effect decreases with the firm's size. This indicates that family influence and professionalisation have more significant impact on the use of accounting instruments and less impact on the differentiaiton of accounting functions, except for smaller family firms.

Professionalisation of Family Firms and Accounting Function: Empirical Evidence

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Professionalisation of Family Firms and Accounting Function: Empirical Evidence"}

An increasing influence of families in firms is associated with lower professionalisation. A less professionalized firm might not be able to exploit the...

Professionalisation of Family Firms and Accounting Function: Empirical Evidence

Data publikacji: 25 cze 2022

Zakres stron: 113 - 131

DOI: https://doi.org/10.2478/ceej-2022-0008

Słowa kluczowe
accounting function, empirical evidence, family firms, financial accounting, management accounting

© 2022 Robert Rieg et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Professionalisation of Family Firms and Accounting Function: Empirical Evidence

Data publikacji: 25 cze 2022

Zakres stron: 113 - 131

DOI: https://doi.org/10.2478/ceej-2022-0008

Słowa kluczoweaccounting function, empirical evidence, family firms, financial accounting, management accounting

© 2022 Robert Rieg et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Słowa kluczowe
accounting function, empirical evidence, family firms, financial accounting, management accounting