Accounting Conservatism in Family Firms versus Non-Family Firms: A Comparative Study on Firms listed in the Egyptian Stock of Exchange.

The aim of this research is to study the level of accounting conservatism in the financial reports of the family firms as well asdetermining the factors that affect the level of accounting conservatism in the family firms listed in the Egyptian stock of exchange. In addition, the research aims to explore whether there is a difference in the level of accounting conservatism in the financial reports of the family firms versus the non- family firms. To achieve the objectives of this research, a Multiplie Regression Model is used where the percentage of the family ownership, family control, and certain operating characteristics are independent variables and the level of accounting conservatism in the financial reports of the family firms as the dependent variable.The research tests the hypotheses using a sample of 40 family firms and compares them with a sample of 40non family firms listed in the Egyptian stock of exchange for the year 2015.The results of this study show that there is a significant positive relation-nship between the family control and the level of accounting conservatism in the financial reports of the family firms. In addition, the results show that there is a significant positive relationship between the profitability and the debt ratio of the firm and the level of accounting conservatism in the financial reports of the family firms. However, the results show that there is no significant relat-ionship between both of the percentage of family ownership and the size of the firm and the level of accounting conservatism in the financial reports of the family firms. Finally, the results show that there is a significant difference between the level of accounting conserveatism in the family firms versus non- family firms. The results show that the level of accounting conservatism is sig-nificant in the non- family firms than the family firms.