From the perspective of SEW and legality, the article takes the 2008—2018 Ashare listed family enterprises as research samples, and examines the impact of family involvement and source of successor CEO on the quality of corporate financial reporting. The study found that family ownership and management involvement have a significant negative impact on the quality of financial reporting. Further research shows that compared with the founder CEO of the first generation, the second generation family CEO and the professional manager successor CEO can enhance the financial reporting quality of the family business. The research enriches the literature on family business research, expands the research vision of the frontier issues of family business financial reporting quality, and provides a reference for how the family business in the later period of the founder’s stage can improve the quality of financial reports.