Family ownership and the value-relevance of earnings and book value

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

Abstract

This study investigates the relation between family ownership and the value-relevance of two primary accounting measures, earnings and book value. We provide theories of the effect of family ownership on the value-relevance of earnings and book value. We contend that current accounting technology does not fully recognise the family firm factors in the earnings or book value of the firm. We find that the value-relevance of earnings and is higher for family firms. We attribute this to the long-term orientation and the higher quality earnings of these firms. In contrast, the value-relevance of book value is lower. We believe this is due to the fact that family firms possess more social and human capital than non-family firms. As these intangible assets are not recognised in the balance sheet, the book value figure becomes of less relevance for family firms.
Original languageEnglish
Title of host publicationProceedings of Family Business Australia 2011 Research & Education Symposium
EditorsD Caspersz, J Thomas
Place of PublicationMelbourne
PublisherFamily Business Australia
Pages1-15
Number of pages15
Publication statusPublished - 2011
EventFBA Family Business Research & Education Symposium - Hyatt Hotel, Perth, WA, Australia
Duration: 31 Aug 201131 Aug 2011
http://www.fambiz.org.au/documents/FBA-2011-Research-and-Education-Symposium-Invitation.pdf

Conference

ConferenceFBA Family Business Research & Education Symposium
CountryAustralia
CityPerth, WA
Period31/08/1131/08/11
Internet address

Fingerprint

Book value
Family ownership
Value relevance
Family firms
Earnings quality
Factors
Balance sheet
Human and social capital
Long-term orientation
Intangible assets

Cite this

Hasso, T., & Duncan, K. (2011). Family ownership and the value-relevance of earnings and book value. In D. Caspersz, & J. Thomas (Eds.), Proceedings of Family Business Australia 2011 Research & Education Symposium (pp. 1-15). Melbourne: Family Business Australia.
Hasso, Tim ; Duncan, Keith. / Family ownership and the value-relevance of earnings and book value. Proceedings of Family Business Australia 2011 Research & Education Symposium. editor / D Caspersz ; J Thomas. Melbourne : Family Business Australia, 2011. pp. 1-15
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Hasso, T & Duncan, K 2011, Family ownership and the value-relevance of earnings and book value. in D Caspersz & J Thomas (eds), Proceedings of Family Business Australia 2011 Research & Education Symposium. Family Business Australia, Melbourne, pp. 1-15, FBA Family Business Research & Education Symposium, Perth, WA, Australia, 31/08/11.

Family ownership and the value-relevance of earnings and book value. / Hasso, Tim; Duncan, Keith.

Proceedings of Family Business Australia 2011 Research & Education Symposium. ed. / D Caspersz; J Thomas. Melbourne : Family Business Australia, 2011. p. 1-15.

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

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Hasso T, Duncan K. Family ownership and the value-relevance of earnings and book value. In Caspersz D, Thomas J, editors, Proceedings of Family Business Australia 2011 Research & Education Symposium. Melbourne: Family Business Australia. 2011. p. 1-15