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

  • Financial distress
  • Z-score
  • Earnings manipulation
  • Earnings management
  • Earnings quality
  • Spanish firms

Palabras clave

  • Dificultades financieras
  • Z-score
  • Manipulación de beneficios
  • Gestión de beneficios
  • Calidad de beneficios
  • Firmas españolas

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Volume 6 – Issue 1

Download Full Pdf version here DOI: 10.26595/eamr.2014.5.1 Analysis of job satisfaction in call centers in Spain José Luis Gallizo and M. Pilar Curós The risk of insolvency and the audit report Anna Ros, ALba Ruiz, Carles Rusiñol and Alexandre Valeriano Systematic Literature Review: Sustainability practices in Startups Andrei Boar Boar and Marc Oliveras-Villanueva

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Article 3, Volume 6 Issue 1

Systematic Literature Review: Sustainability practices in Start-ups Author Andrei Boar-Boar – (UPF Barcelona School of Management) Marc Oliveras-Villanueva – (UPF Barcelona School of Management) DOI: 10.26595/eamr.2014.6.1.3 Download PDF View HTML Received July 29, 2019; accepted November 4, 2019. Abstract English Start-ups and sustainability are growing in our society. For this reason, this paper is written

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Article 2, Volume 6 Issue 1

The risk of insolvency and the audit report Author Anna Ros – (UPF – Barcelona School of Management) Alba Ruiz – (UPF – Barcelona School of Management) Carles Rusiñol – (UPF – Barcelona School of Management) Alexandre Valeriano – (UPF – Barcelona School of Management) DOI: 10.26595/eamr.2014.6.1.2 Download PDF View HTML Received August 25, 2019;

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Article 1, Volume 3 Issue 1:

The impact of ABC costing systems to solve managerial cost problems: a real improvement, a fad or a fashion?

Author

Natàlia Cugueró-Escofet – (Universitat Oberta de Catalunya)

Àngels Fitó-Bertran – (Universitat Oberta de Catalunya)

Received October 29, 2016; accepted November 13, 2016.

Abstract

One of the main problems of management profession is that there is not yet a corpus of theories and knowledge that can assist professionals to take adequate choices for solving the problems they actually have. Initially, we can assume that the inherent reasons for the explosion and diffusion of ABC are that these systems improve the efficiency of the selected strategy. However, a significant number of failures reveal a situation that can be attributed to other potential reasons, for instance a bad implementation. The existence of this paradox, lead us to investigate alternatives reasons for the diffusion of ABC. We show that there are alternative reasons for the diffusion of ABC, which may be a “fad logic” rather than a “problem solving logic” that we think should dominate management. We also argue that ABC systems are not introducing a revolutionary improvement in terms of the conceptualization of costs, as ABC is simply a way of using a full cost approach with a different conception of a cost center. Then, it can be useful mainly in cases where the decisions to be made can be better made using a full cost instead of other cost measures.

Uno de los principales problemas de la profesión administrativa es que todavía no hay un conjunto de teorías y conocimientos que pueda ayudar a los profesionales a tomar decisiones adecuadas para resolver los problemas que realmente tienen. Inicialmente, podemos suponer que las razones inherentes a la eclosión y difusión de ABC son que estos sistemas mejoran la eficiencia de la estrategia seleccionada. Sin embargo, un número significativo de fallos revela una situación que puede atribuirse a otras posibles razones, por ejemplo, una mala implementación. La existencia de esta paradoja, nos lleva a investigar razones alternativas para la difusión de ABC. Encontramos que existen razones alternativas para la difusión de ABC, que puede ser una “lógica de moda” en lugar de una “lógica de resolución de problemas” que creemos que debería dominar la gestión. También argumentamos que los sistemas ABC no están introduciendo una mejora revolucionaria en términos de conceptualización de costos, ya que ABC es simplemente una forma de utilizar un enfoque de costo total con una concepción diferente de un centro de costos. Entonces puede ser útil, principalmente, en los casos en que las decisiones a tomar pueden tomarse mejor utilizando un costo total en lugar de otras medidas de costos.

Citation

Cugueró-Escofet, N., & Fito, M. (2016). The impact of ABC costing systems to solve managerial cost problems: a real improvement, a fad or a fashion?. European Accounting and Management Review3(1), 4-23.

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Keywords

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Volume 6 – Issue 1

Download Full Pdf version here DOI: 10.26595/eamr.2014.5.1 Analysis of job satisfaction in call centers in Spain José Luis Gallizo and M. Pilar Curós The risk of insolvency and the audit report Anna Ros, ALba Ruiz, Carles Rusiñol and Alexandre Valeriano Systematic Literature Review: Sustainability practices in Startups Andrei Boar Boar and Marc Oliveras-Villanueva

Read More »

Article 3, Volume 6 Issue 1

Systematic Literature Review: Sustainability practices in Start-ups Author Andrei Boar-Boar – (UPF Barcelona School of Management) Marc Oliveras-Villanueva – (UPF Barcelona School of Management) DOI: 10.26595/eamr.2014.6.1.3 Download PDF View HTML Received July 29, 2019; accepted November 4, 2019. Abstract English Start-ups and sustainability are growing in our society. For this reason, this paper is written

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Article 2, Volume 6 Issue 1

The risk of insolvency and the audit report Author Anna Ros – (UPF – Barcelona School of Management) Alba Ruiz – (UPF – Barcelona School of Management) Carles Rusiñol – (UPF – Barcelona School of Management) Alexandre Valeriano – (UPF – Barcelona School of Management) DOI: 10.26595/eamr.2014.6.1.2 Download PDF View HTML Received August 25, 2019;

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Article 2, Volume 2 Issue 1:

Economic consequence of accounting standards in the hotel industry: lobbying arguments versus expected impact

Author

Núria Arimany-Serrat – (Universitat de Vic)

Àngels Fitó-Bertran – (Universitat Oberta de Catalunya)

Neus Orgaz-Guerrero – (Universitat Oberta de Catalunya

Abstract

Accounting standards generate economic consequences that can be either intended or unintended. European and US accounting regulators have proposed to capitalize operating leases so that future payments derived from lease contracts are accounted for as debt. As operating leases are an important source of funding for the hotel industry, the sector has lobbied against the proposal. This paper analyses the economic impact on the hotel business of operating lease capitalization, using both hotel operators’ perceptions and quantitative analyses of the expected consequences. Results show that the arguments presented in the hotels’ comment letters are confirmed by the impact predicted. While hotels do not believe that the new standard will improve financial information quality (the intended economic consequence), they expect an increase in debt and reduced profitability (the unintended economic consequences), which may affect their strategies. An early response to this new standard is proposed in order to avoid unintended effects.

Las normas contables generan consecuencias económicas que pueden ser intencionadas o no intencionadas. Los reguladores contables europeos y estadounidenses han propuesto capitalizar los arrendamientos operativos para que los pagos futuros derivados de los contratos de arrendamiento se contabilicen como deuda. Como los arrendamientos operativos son una fuente importante de financiación para la industria hotelera, el sector ha presionado en contra de la propuesta. Este documento analiza el impacto económico en el negocio hotelero de la capitalización de arrendamiento operativo, utilizando tanto las percepciones de los operadores hoteleros como los análisis cuantitativos de las consecuencias esperadas. Los resultados muestran que los argumentos presentados en las cartas de comentarios de los hoteles están confirmados por el impacto previsto. Si bien los hoteles no creen que el nuevo estándar mejore la calidad de la información financiera (la consecuencia económica prevista), esperan un aumento de la deuda y una rentabilidad reducida (las consecuencias económicas no deseadas), lo que puede afectar sus estrategias. Se propone una respuesta temprana a este nuevo estándar para evitar efectos no deseados.

Citation

Arimany, N., Fito, M., & Orgaz, N. (2015). Economic consequence of accounting standards in the hotel industry: Lobbying arguments versus expected impact. European Accounting and Management Review, (3).

Figures

Keywords

  • Operating leases
  • Hotels
  • Economic consequences
  • Business strategy
  • Lobby

Palabras clave

  • Arrendamientos operativos
  • Hoteles
  • Consecuencias económicas
  • Estrategia de negocios
  • Lobby

Share this article

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LinkedIn
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Email
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Related Posts

Volume 6 – Issue 1

Download Full Pdf version here DOI: 10.26595/eamr.2014.5.1 Analysis of job satisfaction in call centers in Spain José Luis Gallizo and M. Pilar Curós The risk of insolvency and the audit report Anna Ros, ALba Ruiz, Carles Rusiñol and Alexandre Valeriano Systematic Literature Review: Sustainability practices in Startups Andrei Boar Boar and Marc Oliveras-Villanueva

Read More »

Article 3, Volume 6 Issue 1

Systematic Literature Review: Sustainability practices in Start-ups Author Andrei Boar-Boar – (UPF Barcelona School of Management) Marc Oliveras-Villanueva – (UPF Barcelona School of Management) DOI: 10.26595/eamr.2014.6.1.3 Download PDF View HTML Received July 29, 2019; accepted November 4, 2019. Abstract English Start-ups and sustainability are growing in our society. For this reason, this paper is written

Read More »

Article 2, Volume 6 Issue 1

The risk of insolvency and the audit report Author Anna Ros – (UPF – Barcelona School of Management) Alba Ruiz – (UPF – Barcelona School of Management) Carles Rusiñol – (UPF – Barcelona School of Management) Alexandre Valeriano – (UPF – Barcelona School of Management) DOI: 10.26595/eamr.2014.6.1.2 Download PDF View HTML Received August 25, 2019;

Read More »

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