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Family business and corporate fraud in a transitional economy

Research Output:
Chapter in Book/Report/Conference proceeding
Conference contribution
 Peer-review

Abstract

Research on family firms often assumes them to be long-term oriented and care about their reputation, but this assumption is not investigated in transitional economies. We propose that family firms in transitional economies may commit more corporate fraud compared to other privately-controlled firms. Due to the lack of legitimacy, family firms face more resource limitations and thus have a lower possibility of survival, which leads them to risk committing fraud in order to survive. To verify our logic, we explore the tendency of family firms to engage in fraud when they are subject to greater survival pressures, when they have social-political sources of support, and when the intensity of external monitoring changes. Our argument is supported by examining publicly listed private firms in China from 2003 to 2015. Our research contributes to the literature on family businesses by showing how institutional contexts impact family business attributes, and to research on corporate fraud by understanding the influence of organizational legitimacy and family governance.

Publication Information

Output type

Research Output:
Chapter in Book/Report/Conference proceeding
Conference contribution
 Peer-review

Original language

English

Publication milestones

  • Published - 24/07/2023

Publication status

Published - 24/07/2023

Publisher

Academy of Management, United States

Publication series

  • Publication series name: Academy of Management Proceedings
    ISSN (Print): 2151-6561

Publication IDs

  • handle.net: 10547/626093

Host publication title

Academy of Management proceedings

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