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Evidence of the inheritance of firm routines through accounting information: An empirical study of the Taiwanese group firms

Published online by Cambridge University Press:  28 August 2018

Han-Sheng Lei ,
Keng-wei Chang ,
Chih-Chang Chen ,
Yu-Ju Chen  and
Ke-Chiun Chang Open the ORCID record for Ke-Chiun Chang [Opens in a new window]
Han-Sheng Lei
Affiliation:
Department of Business Administration, National Yunlin University of Science and Technology, Yunlin, Taiwan
Keng-wei Chang
Affiliation:
Department of Business Administration, National Yunlin University of Science and Technology, Yunlin, Taiwan
Chih-Chang Chen
Affiliation:
Department of Business Administration, Taiwan Shoufu University, Tainan, Taiwan
Yu-Ju Chen
Affiliation:
Department of Finance, National Changhua University of Education, Changhua, Taiwan
Ke-Chiun Chang*
Affiliation:
School of Economics and Management, Wuhan University, Wuhan, China
*
*Corresponding author. Email: [email protected]
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Abstract

The accounting information of a firm is analogous to the characteristics of an organism that contain biological information that influences decisions; such characteristics result from organizational routines (genes). Organizational routines result from organizational learning, and learning from an associated company is an efficient approach for a new venture to establish routines. The study results revealed that the subsidiaries inherited routines from the parent companies related to financial ratios, so we suggest that people should judge the adequacy of a firm’s financial situation by not only referring to the standard of its industry but also to its parent company.

Keywords

accounting informationfinancial ratioroutines inheritanceorganizational routines
Type
Research Article
Information
Journal of Management & Organization , Volume 28 , Issue 6 , November 2022 , pp. 1219 - 1234
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2018

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