PROPENSITY TO EARNINGS MANAGEMENT IN FAMILY AND NON-FAMILY FIRMS
DOI:
https://doi.org/10.22561/cvr.v33i3.7492Keywords:
Results management, Family businesses, Non-family businesses, Incentives for earnings managementAbstract
This study analyzed the incentives and propensity for Earnings Management (GR) in family and non-family businesses. Descriptive research was carried out by means of a survey and a quantitative approach to the data. The study sample corresponded to 182 accountants from family and non-family businesses. The results showed that similar EM techniques are performed by family and non-family businesses, as well as different incentives drive the use of such techniques. It is inferred that family businesses are less prone to EM. The findings also reveal that economic activity and tax incentives are related to the propensity to GR. The study contributes by demonstrating that companies perform EM techniques, which are motivated by different incentives. These results reveal the need to create norms to reduce such practices and increase the quality of accounting information. In addition, by demonstrating that family businesses are less prone to earnings management, it is shown that company ownership can be an explanatory factor for increasing the quality of accounting information.
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