Corporate Governance, Financial Strategies, and Earnings Management Behavior of Family Firms in Japan

2021 Fiscal Year Annual Research Report

• Project/Area Number: 21H00754
• Research Institution: Kwansei Gakuin University
• Principal Investigator: 児島 幸治 関西学院大学, 国際学部, 教授 (80388727)
• Co-Investigator(Kenkyū-buntansha): 忽那 憲治 神戸大学, 経営学研究科, 教授 (00275273) ; 菅原 智 関西学院大学, 商学部, 教授 (40331839) ; ADHIKARY B.K. 同志社大学, ビジネス研究科, 准教授 (40512976)
• Project Period (FY): 2021-04-01 – 2024-03-31
• Keywords: Family firms / Corporate governance / Earnings management

Outline of Annual Research Achievements

The primary purpose of the research was to compare the performance of family firms in Japan. The secondary objective was to understand the family firm’s management and financial strategies, which presumably contributed to the long-term success of family firms. In doing so, in the meantime, we have updated our database and published two academic paper and one book, and drafted one book, and submitted one academic journal using the database.
We compiled a case study of family firms in Japan and published it as two separate papers. Also, we reviewed family business articles in accounting literature and published a book on the entrepreneurship. In addition, we attended a international conference and drafted a book on the “Secrets of Success of Family Firms in Japan: Cases and Lessons.” Finally, we have recently submitted an academic paper titled “Do family firms outperform nonfamily firms in Japan? Further evidence using foreign ownership as a moderator” in Research in International Business and Finance. This paper is in the review stage. To sum up, we have published some papers in, compiled a case study of family firms in Japan, published a book, updated our database for future publications, and drafted another book on family firms in Japan using this research subsidy.

Current Status of Research Progress

2: Research has progressed on the whole more than it was originally planned.

Reason

As previously written in the summary of research achievement, we published some academic papers. We compiled a case study of family firms in Japan and published it as two separate papers. Also, we reviewed family business articles in accounting literature and published a book on the relationship between family business and academics. Finally, we have recently submitted an academic paper titled “Do family firms outperform nonfamily firms in Japan? Further evidence using foreign ownership as a moderator” in Research in International Business and Finance. This paper is in the review stage. To sum up, we have published some papers in, compiled a case study of family firms in Japan, published a book, updated our database for future publications, and drafted another book on family firms in Japan using this research subsidy.

Strategy for Future Research Activity

We plan to present our research results at international conferences. We also plan to publish two academic papers in internationally reputed journals. Also, we plan to publish the book “Secrets of Success of family firms in Japan: Cases and Lessons.” In addition, we plan to conduct some interviews with the family firms in Japan to enrich the case study of family firms in Japan and abroad.