Related party transactions and earnings management in family firms: the moderating role of board characteristics

Purpose The purpose of this paper is to investigate the effect family control on association between related party transactions (RPTs) and different forms accrual-based earnings management (AEM) real (REM), analyzing board characteristics possible association. Design/methodology/approach This studies a sample Italian non-financial listed firms over 2014–2019 period, by GLS regression models, controlling for fixed effects company's sector operation year. Findings Results indicate RPTs (EM) in non-family firms. They point out that use with downward AEM REM perpetrated abnormal discretionary expenses as well substitute via production costs. For firms, findings only substitution AEM. Furthermore, CEO duality, gender diversity presence positively moderate and, respectively, implemented through sales manipulations, upward Originality/value study suggests socioemotional wealth (SEW) differently affects relationship EM, according form latter. It also points firms' heterogeneity providing evidence moderating role various EM.