The Relationship between Corporate Governance Configuration in Family Businesses and the Use of Management Accounting

Extant research has shown that family businesses use less management accounting practices than non-family businesses. In our study, we extend the research in this field by analysing the effects of various corporate governance configurations in family businesses on the usage of management accounting. We find that the composition of the supervisory board (with or without family members) does not have a positive impact on management accounting usage, whereas the introduction of non-family members into the top management team partly does. Our findings suggest that the mere existence of corporate governance bodies such as the supervisory board in family businesses is positively associated with the use of management accounting. Our study also indicates that management accounting information may play a pivotal role in the communication between the top management team and the supervisory board of a family business.