Corporate Governance and Management Accounting in Family Businesses. A Review and a Proposal for Novel Research Pathways

This study analyses a critical, yet often underexplored, relationship between corporate governance and management accounting within family firms. Despite growing scholarly interest, the extant research remains highly fragmented. Previous literature reviews tend to focus on management accounting systems in broad terms, overlooking their linkage with corporate governance. Addressing this gap, this chapter critically reviews and discusses published studies in this domain. Based on a comprehensive analysis of major theories and existing knowledge, it develops novel ideas and sets a foundational framework for new inquiries. After outlining the distinctive characteristics of family firms, it elucidates the antecedents of management accounting systems in relation to ownership structure, board composition, and CEO/TMT characteristics. Thus, it explores the combined effects of corporate governance and management accounting systems on family firm outcomes, such as financial performance and innovation. The comprehensive review culminates in a proposal of novel, theoretically-grounded pathways for future research.