Article 1, Volume 3 Issue 2

Accounting ratio-based predictions: an analysis of the relationship between indicators of financial health and those of accounting manipulation

Author

Joan Llobet-Dalmases – (Universitat Oberta de Catalunya)

Dolors Plana-Erta – (Universitat Oberta de Catalunya)

Àngels Fitó-Bertran – (Universitat Oberta de Catalunya)

Received May 1, 2017; accepted May 29, 2017

Abstract

Against a backdrop of global accounting harmonization, financial information is required to be useful and trustworthy for investors and other users. This study contributes to establishing whether there is a relationship between the Z-score model for predicting financial distress and the Z Vladu model for predicting earnings manipulation. Both models discriminate between companies using financial statement ratios. Extracting data from the Sistema de Análisis de Balances Ibéricos (Iberian Accounts Analysis System, or SABI) database for medium-sized and large Spanish companies for the period 2005 to 2015, both summary indicators have been calculated and descriptive and bivariate analyses have been performed. The results show that there is a relationship between both indicators, albeit a weak one.

En un contexto de armonización contable global, se requiere que la información financiera sea útil y confiable para los inversores y otros usuarios. Este estudio contribuye a establecer si existe una relación entre el modelo Z-score para predecir dificultades financieras y el modelo Z Vladu para predecir la manipulación de ganancias. Ambos modelos discriminan entre compañías que usan índices de estados financieros. Extrayendo datos de la base de datos del Sistema de Análisis de Balances Ibéricos (SABI) para empresas españolas medianas y grandes para el período 2005 a 2015, se han calculado indicadores resumidos y se han realizado análisis descriptivos y bivariados. Los resultados muestran que existe una relación entre ambos indicadores, aunque sea débil.

Citation

Llobet-Dalmases, J., Plana, D., & Fito, M. (2017). Accounting ratio-based predictions: an analysis of the relationship between indicators of financial health and those of accounting manipulation. European Accounting and Management Review3(2).

Figures

Keywords

Palabras clave

Share this article

Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on email
Email
Share on twitter
Twitter

Related Posts

Article 3, Volume 7 Issue 2

Company philosophy and its reputation through an analysis of the MERCO ranking Author José Daniel Barquero Cabrero – (ESERP-Abertis Observatory) Mª de las Mercedes Cancelo Sanmartín – (University of Malaga, UVM, ECSSR) DOI: 10.26595/eamr.2014.7.2.3 Download PDF View HTML Received May 7, 2021; accepted June 22, 2021. Abstract English Social responsibility has been incorporated as a

Read More »

Article 2, Volume 7 Issue 2

The triple role of university academic staff and its effects on students’ satisfaction: contractual tie and gender contextual analysis Author Josep Llach – (Universitat de Girona) Frederic Marimon – (Universitat Internacional de Catalunya) DOI: 10.26595/eamr.2014.7.2.2 Download PDF View HTML Received February 3, 2020; accepted March 4, 2020. Abstract English The university academic staff is a

Read More »

Article 1, Volume 7 Issue 2

Demographic Drivers of Workplace Deviance: A Survey of Clinical and Non-Clinical Hospital Professionals Author Rogério J. Lunkes – (Universidade Federal de Santa Catarina) Ernesto Lopez-Valeiras – (Universidad de Vigo) Jacobo Gomez-Conde – (Universidad Autónoma de Madrid) DOI: 10.26595/eamr.2014.7.2.1 Download PDF View HTML Received February 1, 2021; accepted April 19, 2021. Abstract English This paper aims

Read More »

Article 1, Volume 2 Issue 1:

Is financial reporting quality related to corporate social responsability practices? Evidence from family firms

Author

Jennifer Martinez-Ferrero – (Universidad de Salamanca)

Lázaro Rodriguez-Ariza – (Universidad de Granada)

Beatriz Cuadrado-Ballesteros – (Universidad de Salamanca)

Abstract

The aim of this research is to highlight the relationship between financial reporting quality and corporate social responsibility (CSR) on the family firm sphere. Using a database of 1275 companies for the period 2002–2010 and the GMM estimator of Arellano and Bond (1991) for panel data, our results show that those companies that report high-quality financial statements promote more CSR practices. However, this relationship is weaker in family firms which support the existence of an entrenchment effect that associates greater family ownership with poor-quality information. We argue that family firms differ from non-family regarding the effect of financial reporting quality on the level of CSR practices.

El objetivo de esta investigación es resaltar la relación entre la calidad de la información financiera y la responsabilidad social corporativa (RSC) en el ámbito de la empresa familiar. Utilizando una base de datos de 1275 empresas para el período 2002–2010 y el estimador GMM de Arellano y Bond (1991) para datos de panel, nuestros resultados muestran que aquellas empresas que informan estados financieros de alta calidad promueven más prácticas de RSC. Sin embargo, esta relación es más débil en las empresas familiares que respaldan la existencia de un efecto de atrincheramiento que asocia una mayor propiedad familiar con información de baja calidad. Argumentamos que las empresas familiares difieren de las no familiares con respecto al efecto de la calidad de la información financiera en el nivel de las prácticas de RSC.

Citation

Ferrero, J., Rodríguez Ariza, L., & Cuadrado‐Ballesteros, B. (2015). Is financial reporting quality related to corporate social responsibility practices? Evidence from family firms. European Accounting and Management Review2(1), 1-45.

Figures

Keywords

Palabras clave

Share this article

Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on email
Email
Share on twitter
Twitter

Related Posts

Article 3, Volume 7 Issue 2

Company philosophy and its reputation through an analysis of the MERCO ranking Author José Daniel Barquero Cabrero – (ESERP-Abertis Observatory) Mª de las Mercedes Cancelo Sanmartín – (University of Malaga, UVM, ECSSR) DOI: 10.26595/eamr.2014.7.2.3 Download PDF View HTML Received May 7, 2021; accepted June 22, 2021. Abstract English Social responsibility has been incorporated as a

Read More »

Article 2, Volume 7 Issue 2

The triple role of university academic staff and its effects on students’ satisfaction: contractual tie and gender contextual analysis Author Josep Llach – (Universitat de Girona) Frederic Marimon – (Universitat Internacional de Catalunya) DOI: 10.26595/eamr.2014.7.2.2 Download PDF View HTML Received February 3, 2020; accepted March 4, 2020. Abstract English The university academic staff is a

Read More »

Article 1, Volume 7 Issue 2

Demographic Drivers of Workplace Deviance: A Survey of Clinical and Non-Clinical Hospital Professionals Author Rogério J. Lunkes – (Universidade Federal de Santa Catarina) Ernesto Lopez-Valeiras – (Universidad de Vigo) Jacobo Gomez-Conde – (Universidad Autónoma de Madrid) DOI: 10.26595/eamr.2014.7.2.1 Download PDF View HTML Received February 1, 2021; accepted April 19, 2021. Abstract English This paper aims

Read More »

Uso de cookies

Este sitio web utiliza cookies para que usted tenga la mejor experiencia de usuario. Si continúa navegando está dando su consentimiento para la aceptación de las mencionadas cookies y la aceptación de nuestra política de cookies, pinche el enlace para mayor información.plugin cookies

ACEPTAR
Aviso de cookies