Long-term Impact of Chinese Family Businesses on Earnings Management under the Sustainable Business Concept

Abstract

This study aims to delve into the long-term impact of Chinese family businesses on earnings management under the framework of sustainable business practices. Considering the significant role of family businesses in the global economy, this paper focuses on the criticality of their earnings management strategies to economic stability. Employing an in-depth case study methodology, the paper analyzes several successful family businesses to explore the practical implications of sustainable business models on earnings management. The research reveals that integrating the concept of sustainable business into corporate culture and orienting towards long-term development can balance short-term gains with long-term sustainability, thereby fostering the robust growth of the enterprise. The conclusions of this paper emphasize the need for family businesses to concentrate on collective efforts in areas such as social responsibility, innovation upgrading, transparency, and effective communication to achieve long-term and stable development. This study provides practical guidelines for sustainable business strategies tailored for Chinese family businesses, aiming to create more favorable conditions and establish a solid foundation for future long-term development.