An Empirical Study On The Evaluation Of Financial Reporting Quality Of Family Firms From The Perspective Of CPA

Family firm as an important economic organization is playing more and more significant role in boosting economy,and a high-quality financial reporting,both for the owners and external information users are important.Thus,how to evaluate the quality of financial reporting of family firm has become the research focus in recent years.At present,domestic and foreign scholars mostly did researches from the point of view of family firm information disclosure,some scholars evaluated the quality of financial reporting by using the method of constructing index,while studies on evaluation of the quality of family firm's financial reporting is relatively less,and there is no unified conclusion.This paper studied the quality of financial reporting of family firm from the perspective of external CPA.This paper took Shanghai and Shenzhen A shares of listed companies from year 2011 to 2015 as the research sample.In order to study the difference between family firm and non family firm financial reporting quality,this paper adopted regression analysis models between audit fees,audit risk,and family firm respectively.Meanwhile,a robust test would be taken to verify the results.The study found that there is a significant positive correlation between audit fees and family firm.However,the relationship between audit risk and family firm is not significant.It is obviously different from the results of mainstream research abroad,the difference is caused by the incomplete separation of ownership and management in our country's family firms.Family members hold the majority of ownership,and highly retain the right of decision-making,family members may control company's financial condition,and financial management is opaque,leading firms can not truthfully reflect the accounting information,so the quality of family firm financial reporting compared to non family firm's is low.There are three innovations in this paper:First,this paper quantifies the quality of financial reporting with different models in a new perspective from CPA,and then analyses whether there are differences in quality of financial reporting between family firm and non family firm.Second,the majority of previous researches were based on the single family firm group,and for the comparative study between family firm and non family firm is less,this paper is aiming at family firm and non family firm so as to supplement the research in the field to a certain extent;third,this paper obtains the relevant empirical data by using a large amount of data from listed companies,which has a certain practical significance,and also provids data base for subsequent research to some extent.