Family Control, International Accounting Standards, and Access to Foreign Banks: Evidence from International Entrepreneurial Firms

24 Pages Posted: 3 Mar 2016

See all articles by Qiu Chen

Qiu Chen

University of Ottawa

Shujun Ding

University of Ottawa - Telfer School of Management

Zhenyu Wu

University of Manitoba

Fan Yang

University of Saskatchewan

Date Written: April 2016

Abstract

This article aims to understand if a change in accounting standards offers new avenues for helping entrepreneurial firms, especially those family‐controlled ones, to obtain debt financing from foreign banks. We find that amid the global wave of adopting International Accounting Standards (IAS), family‐controlled firms tend not to voluntarily switch from local generally accepted accounting principles to IAS. After self‐selection issues are taken into account, furthermore, entrepreneurial firms adopting IAS experience less difficulty accessing loans from international banks. However, IAS adoption differentially influences private firms, family owned versus nonfamily controlled, in terms of their access to debt capital.

Suggested Citation

Chen, Qiu and Ding, Shujun and Wu, Zhenyu and Yang, Fan, Family Control, International Accounting Standards, and Access to Foreign Banks: Evidence from International Entrepreneurial Firms (April 2016). Journal of Small Business Management, Vol. 54, Issue 2, pp. 598-621, 2016. Available at SSRN: https://ssrn.com/abstract=2741390 or http://dx.doi.org/10.1111/jsbm.12160

Qiu Chen (Contact Author)

University of Ottawa ( email )

Ottawa, Ontario K1N 6N5
Canada

Shujun Ding

University of Ottawa - Telfer School of Management ( email )

136 Jean-Jacques Lussier Street
Ottawa, Ontario K1N 6N5
Canada

Zhenyu Wu

University of Manitoba ( email )

181 Freedman Crescent
Winnipeg, Manitoba R3T 5V4
Canada

Fan Yang

University of Saskatchewan ( email )

College of Education
Saskatoon, Saskatchewan S7N 5A7
Canada

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