The effect of ownership structure on disclosure quality and credit ratings in family firms: the moderating role of auditor choice

Research output: Contribution to journalArticlepeer-review

Abstract

Despite the substantial degree of heterogeneity within family firms, little is known about how their heterogeneity affects firm behavior and the implication for the shareholder–debtholder agency problem. Our study contributes to the literature by examining whether family firms with a higher level of control-ownership divergence would disclose less information and whether Big 4 auditors play a moderating role in mitigating the negative impact of control-ownership divergence on disclosure quality resulting in improved credit ratings. Using data from the emerging economy of Taiwan, we provide support for our three hypotheses. Our contributions will interest family firm owners, researchers, auditors, and policymakers.
Original languageEnglish
Pages (from-to)140-158
Number of pages19
JournalFamily Business Review
Volume35
Issue number2
Early online date7 Dec 2021
DOIs
Publication statusPublished - Jun 2022

Keywords

  • Big 4 auditors
  • control-ownership divergence
  • credit ratings
  • disclosure quality
  • family firms

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