Visibilità dell'impresa e qualità degli utili

This paper addresses the topic of family firms’ financial disclosure
quality. Previous literature suggests that company’s size, as a form of
visibility, moderates a firm’s earnings management practices. We
analyze the relationship between earnings management and different
forms of visibility, namely, media exposure, consumer proximity,
invested capital and sales, by comparing family and non-family
companies. We provide evidence that the forms of visibility taken into
consideration have a different effect on a firm’s earnings quality.
Furthermore, our results suggest that family businesses are less likely
to resort to these unethical practices, especially in the presence of
media exposure and proximity of the business to the consumer.