Financial Reporting Quality and Investment Decisions for Family Firms

The Accuity LLP Accounting Faculty Fellowship Assistant Professor of Accounting Tawei (David) Wang has a forthcoming co-authored article entitled "the association between financial reporting quality and investment decisions for family firms." This article suggests that family firms are more likely to under-invest than non-family firms in order to protect their socioemotional wealth, and financial reporting quality is more negatively associated with the family firms’ under-investment behavior. The existence of internal financing channels reduces this negative association.