AI and Big Data in Analyzing Family Business Governance: Non-Family CEOs’ Impact on Accounting Irregularities

This study leverages AI and big data to explore the impact of non-family CEOs on corporate misconduct within family businesses, a vital sector for the global economy. Despite a trend towards non-family leadership, ethical misalignment potential, especially concerning financial health and market competitiveness, is understudied. Using sophisticated AI and big data methods, we examined Chinese A-share listed family firms (2008-2022). Results support our hypothesis that non-family CEOs could raise corporate misconduct risks, notably in financially robust, less competitive firms. AI and big data analysis indicates a significant link between non-family CEOs and higher misconduct likelihood in stable, low-competition markets. This research enriches corporate governance literature, highlighting non-family CEOs’ complex influence in family firms. It offers a strong methodological framework and insights valuable to family business stakeholders and policymakers.