Mandatory restatement, family dominance and management turnover: The evidence from an emerging economy

Jo Ting Wei, Iou Ming Wang, Hsin Hung Wu

Research output: Contribution to journalArticlepeer-review

Abstract

Due to the uniqueness of mandatory restatements, this paper examines whether family dominance affects the relationship between mandatory restatements and management turnover in an emerging economy – Taiwan. This paper adopts logistic regression models along with reporting the marginal effect of all explanatory variables to examine management turnover in different years around the year of mandatory restatement announcement. The findings show that family directorship weakens the positive relationship between mandatory restatements and management turnover in one year after the year of mandatory restatement announcement whereas do not show that family shareholding can affect the above relationship in any observed years. The findings have essential policy implications for security regulators and firms to strengthen family governance practices and financial reporting quality.

Original languageEnglish
Pages (from-to)144-155
Number of pages12
JournalInvestment Management and Financial Innovations
Volume14
Issue number2
DOIs
Publication statusPublished - 2017 Jan 1

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management

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