Earnings Management in Spain. Some Evidence from Companies Quoted in the Spanish Stock Exchange

UPF Economics and Business Working Paper No. 677

14 Pages Posted: 1 Oct 2003

See all articles by Oriol Amat

Oriol Amat

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Jordi Perramon

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Ester Oliveras

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Abstract

After the accounting scandals that have taken place mainly in the United States during the last years, some Spanish leading authorities have defended the idea that these kind of accounting problems cannot happen in Spain. They argue that accounting regulation in Europe, and specifically in Spain, make more difficult the use of creative accounting practices.

The objective of this paper is to identify some evidence about the situation in Spain. The study tries to demonstrate that some accounting practices of several of the companies quoted in the Spanish Stock Exchange could be qualified as earnings management.

To carry out this study, the authors have analysed the accounts of the 35 companies included in the stock market index IBEX 35. This index is calculated with the share prices variations of the most important companies quoted in the Spanish Stock Exchange.

Keywords: accounting regulation, creative accounting, earnings management, financial accounting, IAS, Spain, IBEX 35

JEL Classification: M41, M43, M47, G28

Suggested Citation

Amat, Oriol and Perramon, Jordi and Oliveras Sobrevias, Ester, Earnings Management in Spain. Some Evidence from Companies Quoted in the Spanish Stock Exchange. UPF Economics and Business Working Paper No. 677. Available at SSRN: https://ssrn.com/abstract=428262 or http://dx.doi.org/10.2139/ssrn.428262

Oriol Amat (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
+34 93 542 16 55 (Phone)
+34 93 542 17 46 (Fax)

Jordi Perramon

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
3493 542-1753 (Phone)
3493 542-1746 (Fax)

Ester Oliveras Sobrevias

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
+34 93 542 16 73 (Phone)
+34 93 542 17 46 (Fax)

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