The strategic choices of family firms are influenced by economic and non-economic reference points. We contend that the preservation of the affect-related values a family derives from its ownership position in a firm (i.e., socio-emotional wealth – SEW) affects financial reporting quality and...

Mandatory auditor rotation was recently proposed for the European Union and is also under consideration in the United States. There has been little research into either the benefits or costs of rotation in a true mandatory setting that could inform intelligent policy making. Our paper helps fill...

The European Union's response to recent financial reporting scandals on both sides of the Atlantic reached a crucial stage recently when the European Parliament voted to accept the new 8th Company Law Directive. It takes the minimum harmonisation route to set the basic standards that Member...

Mandatory audit rotation imposes periodical breaks to audit engagements and is intended to avoid excessively long relationships between the auditor and the client. The E.U. has finally introduced mandatory rotation for the audit firm in addition to the already existing audit partner rotation...

Firms’ bankruptcy is a problem not only related to companies but also affects social welfare. Analysing a matched sample of bankrupt and healthy unlisted companies from a code law institutional setting (Spain), this paper has three main objectives: it aims to demonstrate that bankrupt firms...

Top management succession may be a real threat for the long-term profitability of companies, in particular when it involves the founder whose name also identifies their brand and their products. This is extremely important in the luxury sector where loyalty, trust and the image of brands in...

The luxury sector is one of the most significant segments of the economy. It is increasingly attracting the interest of investors given the high margins and growth that companies in this sector exhibit. What is the “secret” of this outstanding performance? Extant literature shows that...

This paper examines the level and efficiency of private firms' investments with respect to corporate tax cuts. Earlier research has focused mainly on public firms. Research into private firms is especially relevant since these companies tend to finance future growth through internal financing....

We examine whether the characteristics of chief financial officers (CFOs) are associated with real earnings management (REM). Using hand-collected data on CFOs’ characteristics, we find that female CFOs and highly visible CFOs are associated with lower levels of REM, while CFOs with an MBA or...