ABSTRACT

This study is intended to critically analyze the views of Indonesian accounting researchers who employ family ownership as a variable in capital market-based accounting research. A qualitative approach is used in this study by borrowing literary critical theory, with the object of research: Sanjaya’s article. This article was presented in the 17th Indonesia National Symposium on Accounting. Findings of this study showed that Sanjaya failed to recognize the condition of Indonesian society – in which the patterns of sociopolitical thought are formed by the “Orde Baru” regime – when he uses family ownership as a variable. Thus, agency theory, which is widely employed in accounting studies, is believed irrelevant to the Indonesian sociopolitical environment if the concept is not modified to the Indonesia setting.