IDEAS home Printed from https://ideas.repec.org/a/eee/accoun/v42y2007i3p305-328.html
   My bibliography  Save this article

Does public/private status affect the level of earnings management in code-law contexts outside the United States? A study based on the Spanish case

Author

Listed:
  • Arnedo, Laura
  • Lizarraga, Fermin
  • Sanchez, Santiago

Abstract

No abstract is available for this item.

Suggested Citation

  • Arnedo, Laura & Lizarraga, Fermin & Sanchez, Santiago, 2007. "Does public/private status affect the level of earnings management in code-law contexts outside the United States? A study based on the Spanish case," The International Journal of Accounting, Elsevier, vol. 42(3), pages 305-328.
    • Handle: RePEc:eee:accoun:v:42:y:2007:i:3:p:305-328
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0020-7063(07)00053-2
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brenda Van Tendeloo & Ann Vanstraelen, 2008. "Earnings Management and Audit Quality in Europe: Evidence from the Private Client Segment Market," European Accounting Review, Taylor & Francis Journals, vol. 17(3), pages 447-469.
    2. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 2000. "Investor protection and corporate governance," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 3-27.
    3. B. Gill de Albornoz & Jose Alcarria, 2003. "Analysis and diagnosis of income smoothing in Spain," European Accounting Review, Taylor & Francis Journals, vol. 12(3), pages 443-463.
    4. Degeorge, Francois & Patel, Jayendu & Zeckhauser, Richard, 1999. "Earnings Management to Exceed Thresholds," The Journal of Business, University of Chicago Press, vol. 72(1), pages 1-33, January.
    5. Juan Manuel García Lara & Beatriz García Osma & Araceli Mora, 2005. "The Effect of Earnings Management on the Asymmetric Timeliness of Earnings," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(3‐4), pages 691-726, April.
    6. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    7. Ball, Ray & Kothari, S. P. & Robin, Ashok, 2000. "The effect of international institutional factors on properties of accounting earnings," Journal of Accounting and Economics, Elsevier, vol. 29(1), pages 1-51, February.
    8. Goergen, Marc & Renneboog, Luc & Correia da Silva, Luis, 2005. "When do German firms change their dividends?," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 375-399, March.
    9. Gaver, Jennifer J. & Gaver, Kenneth M. & Austin, Jeffrey R., 1995. "Additional evidence on bonus plans and income management," Journal of Accounting and Economics, Elsevier, vol. 19(1), pages 3-28, February.
    10. Thomas, Jacob & Zhang, Xiao-jun, 2000. "Identifying unexpected accruals: a comparison of current approaches," Journal of Accounting and Public Policy, Elsevier, vol. 19(4-5), pages 347-376.
    11. Debra Jeter & Lakshmanan Shivakumar, 1999. "Cross-sectional estimation of abnormal accruals using quarterly and annual data: effectiveness in detecting event-specific earnings management," Accounting and Business Research, Taylor & Francis Journals, vol. 29(4), pages 299-319.
    12. Steven Young, 1999. "Systematic Measurement Error in the Estimation of Discretionary Accruals: An Evaluation of Alternative Modelling Procedures," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 26(7&8), pages 833-862.
    13. Rajan, Raghuram G & Zingales, Luigi, 1995. "What Do We Know about Capital Structure? Some Evidence from International Data," Journal of Finance, American Finance Association, vol. 50(5), pages 1421-1460, December.
    14. Leuz, Christian & Nanda, Dhananjay & Wysocki, Peter D., 2003. "Earnings management and investor protection: an international comparison," Journal of Financial Economics, Elsevier, vol. 69(3), pages 505-527, September.
    15. Ben‐Hsien Bao & Da‐Hsien Bao, 2004. "Income Smoothing, Earnings Quality and Firm Valuation," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(9‐10), pages 1525-1557, November.
    16. Heidi Vander Bauwhede & Marleen Willekens, 2004. "Evidence on (the lack of) audit-quality differentiation in the private client segment of the belgian audit market," European Accounting Review, Taylor & Francis Journals, vol. 13(3), pages 501-522.
    17. Juan Manuel García Lara & Beatriz García Osma & Araceli Mora, 2005. "The Effect of Earnings Management on the Asymmetric Timeliness of Earnings," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(3‐4), pages 691-726, April.
    18. McNichols, Maureen F., 2000. "Research design issues in earnings management studies," Journal of Accounting and Public Policy, Elsevier, vol. 19(4-5), pages 313-345.
    19. Casasola, María José & Tribo Gine, José Antonio, 2004. "Banks as blockholders," DEE - Working Papers. Business Economics. WB wb040101, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    20. Stuart Michelson & James Jordan-Wagner & Charles Wootton, 2000. "The relationship between the smoothing of reported income and risk-adjusted returns," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 24(2), pages 141-159, June.
    21. Cloyd, CB & Pratt, J & Stock, T, 1996. "The use of financial accounting choice to support aggressive tax positions: Public and private firms," Journal of Accounting Research, Wiley Blackwell, vol. 34(1), pages 23-43.
    22. Ben-Hsien Bao & Da-Hsien Bao, 2004. "Income Smoothing, Earnings Quality and Firm Valuation," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(9-10), pages 1525-1557.
    23. Ball, Ray & Kothari, S. P. & Robin, Ashok, 2000. "Corrigendum to "The effect of international institutional factors on properties of accounting earnings"; [Journal of Accounting and Economics 29 (2000) 1-51]," Journal of Accounting and Economics, Elsevier, vol. 30(2), pages 241-241, October.
    24. Vander Bauwhede, Heidi & Willekens, Marleen & Gaeremynck, Ann, 2003. "Audit firm size, public ownership, and firms' discretionary accruals management," The International Journal of Accounting, Elsevier, vol. 38(1), pages 1-22.
    25. Steven Young, 1999. "Systematic Measurement Error in the Estimation of Discretionary Accruals: An Evaluation of Alternative Modelling Procedures," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 26(7‐8), pages 833-862, September.
    26. DeFond, Mark L. & Park, Chul W., 1997. "Smoothing income in anticipation of future earnings," Journal of Accounting and Economics, Elsevier, vol. 23(2), pages 115-139, July.
    27. Armo Gomes & Walter Novaes, 2001. "Sharing of Control as a Corporate Governance Mechanism," Penn CARESS Working Papers 3756d78204ca49d92aaf1c17c, Penn Economics Department.
    28. Kothari, S.P. & Leone, Andrew J. & Wasley, Charles E., 2005. "Performance matched discretionary accrual measures," Journal of Accounting and Economics, Elsevier, vol. 39(1), pages 163-197, February.
    29. Healy, Paul M., 1985. "The effect of bonus schemes on accounting decisions," Journal of Accounting and Economics, Elsevier, vol. 7(1-3), pages 85-107, April.
    30. Burgstahler, David & Dichev, Ilia, 1997. "Earnings management to avoid earnings decreases and losses," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 99-126, December.
    31. Kevin Holland & Richard Jackson, 2004. "Earnings management and deferred tax," Accounting and Business Research, Taylor & Francis Journals, vol. 34(2), pages 101-123.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Navarro-García, Juan Carlos & Madrid-Guijarro, Antonia, 2016. "Real economic activity and accounting information in Spanish construction and real estate firms," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 19(1), pages 21-30.
    2. Ludovic Vigneron & Yves Mard, 2016. "Earnings management across publicly traded and privately held French SMEs," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 29(3), pages 416-440.
    3. Laura Arnedo & Fermín Lizarraga & Santiago Sánchez, 2012. "The role of accounting accruals for the prediction of future cash flows: evidence from Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 3(4), pages 499-520, December.
    4. Chaima Kouba & Anis Ben Amar & Maali Kachouri, 2024. "Earnings Management and Corporate Social Responsibility: Moderating Effect of Managerial Entrenchment Evidence from France," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 60-86.
    5. Silva, Aldy Fernandes da & Weffort, Elionor Farah Jreige & Flores, Eduardo da Silva & Silva, Glauco Peres da, 2014. "Gerenciamento de resultados e crises econômicas no mercado de capitais brasileiro," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 54(3), May.
    6. Karampinis, Nikolaos I. & Hevas, Dimosthenis L., 2013. "Effects of IFRS Adoption on Tax-induced Incentives for Financial Earnings Management: Evidence from Greece," The International Journal of Accounting, Elsevier, vol. 48(2), pages 218-247.
    7. Belén Gill de Albornoz Noguer & Simona Rusanescu, 2017. "Foreign ownership and financial reporting quality in private subsidiaries," Working Papers. Serie EC 2017-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    8. Campa, Domenico & Camacho-Miñano, María-del-Mar, 2015. "The impact of SME’s pre-bankruptcy financial distress on earnings management tools," International Review of Financial Analysis, Elsevier, vol. 42(C), pages 222-234.
    9. Giuseppe Iuliano & Gaetano Matonti, 2015. "Do big 4 audit companies detect earnings management and report it in the audit opinion? Empirical evidence from italian non-listed firms," ESPERIENZE D'IMPRESA, FrancoAngeli Editore, vol. 2015(2), pages 5-43.
    10. Manuel Cano Rodríguez & Santiago Sánchez Alegría, 2012. "The value of audit quality in public and private companies: evidence from Spain," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(4), pages 683-706, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salma S. Ibrahim, 2009. "The Usefulness of Measures of Consistency of Discretionary Components of Accruals in the Detection of Earnings Management," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(9‐10), pages 1087-1116, November.
    2. Vander Bauwhede, Heidi & Willekens, Marleen & Gaeremynck, Ann, 2003. "Audit firm size, public ownership, and firms' discretionary accruals management," The International Journal of Accounting, Elsevier, vol. 38(1), pages 1-22.
    3. Erik Peek & Roger Meuwissen & Frank Moers & Ann Vanstraelen, 2012. "Comparing Abnormal Accruals Estimates across Samples: An International Test," European Accounting Review, Taylor & Francis Journals, vol. 22(3), pages 533-572, September.
    4. Jorge Farinha & Luis Filipe Viana, 2006. "Board structure and modified audit opinions: the case of the Portuguese Stock Exchange," CEF.UP Working Papers 0609, Universidade do Porto, Faculdade de Economia do Porto.
    5. Dechow, Patricia & Ge, Weili & Schrand, Catherine, 2010. "Understanding earnings quality: A review of the proxies, their determinants and their consequences," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 344-401, December.
    6. Karampinis, Nikolaos I. & Hevas, Dimosthenis L., 2013. "Effects of IFRS Adoption on Tax-induced Incentives for Financial Earnings Management: Evidence from Greece," The International Journal of Accounting, Elsevier, vol. 48(2), pages 218-247.
    7. Iatridis, George, 2010. "International Financial Reporting Standards and the quality of financial statement information," International Review of Financial Analysis, Elsevier, vol. 19(3), pages 193-204, June.
    8. Pelham Gore & Peter Pope & Ashni Singh, 2007. "Earnings management and the distribution of earnings relative to targets: UK evidence," Accounting and Business Research, Taylor & Francis Journals, vol. 37(2), pages 123-149.
    9. Susana Callao & José I. Jarne & David Wróblewski, 2019. "A New Perspective on Earnings Management in Emerging European Countries: Investigation on Environmental Factors that Explain Differences in Earnings Management," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 7(2), pages 59-81.
    10. José A. C. Moreira & Peter F. Pope, 2007. "Piecewise Linear Accrual Models: do they really control for the asymmetric recognition of gains and losses?," CEF.UP Working Papers 0703, Universidade do Porto, Faculdade de Economia do Porto.
    11. Balboa, Marina & López-Espinosa, Germán & Rubia, Antonio, 2013. "Nonlinear dynamics in discretionary accruals: An analysis of bank loan-loss provisions," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5186-5207.
    12. Othman, Hakim Ben & Zeghal, Daniel, 2006. "A study of earnings-management motives in the Anglo-American and Euro-Continental accounting models: The Canadian and French cases," The International Journal of Accounting, Elsevier, vol. 41(4), pages 406-435, 012.
    13. Salma S. Ibrahim, 2009. "The Usefulness of Measures of Consistency of Discretionary Components of Accruals in the Detection of Earnings Management," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(9-10), pages 1087-1116.
    14. Ann Jorissen & David Otley, 2010. "The management of accounting numbers: Case study evidence from the ‘crash’ of an airline," Accounting and Business Research, Taylor & Francis Journals, vol. 40(1), pages 3-38.
    15. Holger Daske & Günther Gebhardt & Stuart McLeay, 2006. "The distribution of earnings relative to targets in the European Union," Accounting and Business Research, Taylor & Francis Journals, vol. 36(3), pages 137-167.
    16. Belén Gill de Albornoz Noguer & Simona Rusanescu, 2017. "Foreign ownership and financial reporting quality in private subsidiaries," Working Papers. Serie EC 2017-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    17. DEGEORGE, François & DING, Yuan & JEANJEAN, Thomas & STOLOWY, Hervé, 2005. "Does Analyst Following Curb Earnings Management?," HEC Research Papers Series 810, HEC Paris.
    18. Araceli Mora Enguidanos & Juan Manuel García Lara & Beatriz García Osma & Ana Gisbert Clemente, 2004. "La Comparabilidad De La Información Contable En Europa: Efectos De La Manipulación Contable Sobre El Nivel De Conservadurismo," Working Papers. Serie EC 2004-14, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    19. Ke Zhong & Robert B. Welker & Donald W. Gribbin, 2010. "Method‐Shifting in Aggressive Earnings Reporting: The Case of the US Software Industry's Response to New US Regulation," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 37(7‐8), pages 792-814, July.
    20. Massa, Massimo & li, zhe & xu, niahang & Zhang, Hong, 2016. "The Impact of Sin Culture: Evidence from Earning Management and Alcohol Consumption in China," CEPR Discussion Papers 11475, C.E.P.R. Discussion Papers.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:accoun:v:42:y:2007:i:3:p:305-328. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620179 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.