Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/187617 
Authors: 
Year of Publication: 
2010
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 3 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2010 [Pages:] 95-129
Publisher: 
Elsevier, Amsterdam
Abstract: 
This paper provides evidence to show that in the presence of imperfect formal institutions there is both a substitutional and a complementary relationship between accounting information and reputation, an informal institution. Empirical results using a sample of family firms listed in the Chinese A-share stock market from 2004 to 2007 show that in China, where the legal environment is far from perfect, the complementary relationship between reputation and accounting information is more pronounced than is the substitutional relationship. Thus, the aggregate effect is that a better reputation improves the usefulness of accounting information in debt contracts. Besides the aggregate effect, this paper also provides evidence of the substitutional and complementary relationships between reputation and accounting separately.
Subjects: 
Reputation
Family firm
Accounting information
Debt financing
Contracting cost
JEL: 
G14
G32
M41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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