Earnings management among bankrupt non-listed firms: evidence from Spain

Campa, Domenico; Miñano, María del Mar Camacho

doi:10.1080/02102412.2014.890820

Cited by 22 publications

(24 citation statements)

References 39 publications

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“…Dutzi and Rausch (2016) observed that empirical research on earnings management behaviour of failing companies developed within the last ten years and remained scanty. Most of these studies emanated from developed economies (Campa & Camacho-Minano, 2014;Cornanic & Novak, 2015;Lisboa, 2016). However, a group of defaulters of deposit money banks in Nigeria affords a unique opportunity to study earnings management in troubled companies in Nigeria.…”

Section: Introductionmentioning

confidence: 99%

Effect of upper echelons’ demographic characteristics on earnings management in troubled non-listed companies in Nigeria

Taleatu

Adetula

Iyoha

2020

Cogent Arts & Humanities

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Research has shown that companies in a financial crisis are usually successful in hiding their poor performance through aggressive earnings management at the detriment of stakeholders like investors and loan providers. The wave of current bank loan defaulters rocking the Nigerian banking system afforded a unique opportunity to study earnings management in troubled, non-listed companies in Nigeria to contribute to the attainment of the sustainability goal 9 on industrialization in developing countries. This study aimed at investigating the influence of top management's demographic characteristics on corporate earnings management. Using Slovin's 1960 sampling size formula, 80 non-listed companies were selected for the study from the list of 98 non-listed companies among the debtors of Assets Management Corporation of Nigeria (AMCON). Copies of a questionnaire were administered on 240 financial officers (3 participants per company). Descriptive statistics involved computation of percentages, means and standard deviations while hypotheses were tested with structural equation modelling using AMOS SPSS. Findings revealed a relatively high level of earnings management with significant positive relationships with age, tenure, educational level and gender of the CFOs.

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Section: Introductionmentioning

confidence: 99%

Effect of upper echelons’ demographic characteristics on earnings management in troubled non-listed companies in Nigeria

Taleatu

Adetula

Iyoha

2020

Cogent Arts & Humanities

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“…Por otra parte, Ghazali, Shafie y Sanusi (2015) observan que los gerentes de las compañías se involucran en la gestión de ganancias cuando las finanzas de las mismas son saludables y su ganancia es alta, otros autores afirman que conocer el nivel de dificultad financiera que presentan las empresas es trascendente, puesto que afecta directamente la forma en que los administradores gestionan las ganancias. Entre más preocupación exista ante una posible quiebra, más se aplicará la gestión de ganancias hacia aumentar los ingresos (Rosner, 2003;Li, Abeysekera y Ma, 2011;Campa y Camacho-Miñano, 2014, 2015Ahmadpour y Shahsavari, 2016).…”

Section: Gestión De Ganancias Y Riesgo De Quiebraunclassified

Gestión de ganancias en el riesgo de quiebra de las empresas públicas mexicanas

2021

RCS

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A highly studied phenomenon within the business environment is bankruptcy in organizations. However, an area in which this status has been less related is the quality of financial information reported by companies. Accordingly, the objective of this research is to analyze the relationship between bankruptcy risk and earnings management practiced by public companies in Mexico. Analyzing a universe of 145 companies and taking as a sample a total of 86 companies that were listed on the Mexican Stock Exchange during the 2014-2018 period, a quantitative, longitudinal, and causal study was developed, collecting data from secondary sources such as Bloomberg and annual reports of companies on their websites. A Generalized Least Squares regression panel was performed with the support of STATA 12. The results show that the increase in earnings management increases the risk of bankruptcy in the companies in the sample of this study. It is concluded that, when managing the earnings of the companies of the Mexican Stock Exchange, their risk of bankruptcy may increase and represent a serious problem for their stakeholders.

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“…Delaying bankruptcy through earnings management leads the company to a point beyond which the recovery of the business is not feasible. (Campa D, Camacho-Minano M., 2014) are investigating the application of earnings management to non-listed firms in Spain three years before bankruptcy. Their results have shown that firms manage earnings in such a way that allows them to show profitability growth over the three years before bankruptcy, using accrued revenue.…”

Section: Literature Reviewmentioning

confidence: 99%

Detecting Creative Accounting in Businesses in Financial Distress

Arnis¹,

Karamanis²,

Kolias³

2019

AFR

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This paper investigates whether the management of firms in financial distress applies creative accounting techniques in order to fine-tune the elements of their financial statements. For this purpose, the financial statements of 385 Greek bankrupt firms of the trade and manufacturing sectors for the period 2003 to 2014 were analyzed. The sample was divided into two sub periods; in the period before the financial crisis, that is from 2003 to 2008, and the period 2009 to 2014 during which the Greek economy was in crisis and recession. By applying factor analysis, five financial ratios were selected, which formed the independent variables in a Discriminant Analysis (MDA) and Logit models in order to find those firms which, while they were bankrupt they were classified in the last period of their operation as healthy (type I error).By selecting these firms (common to both models), their accounting data for the last two years before they went bankrupt have been investigated in order to determine whether they have been affected by the application of creative accounting methods. The results showed that the management of some of the selected firms applied creative accounting techniques during the last year of operation before their bankruptcy, which led to the manipulation and falsification of the published financial statements during the period before the financial crisis. However, this is not the case for the period 2009 to 2014, because the economic crisis affects the behavior of managers in applying creative accounting, which is owing to the changes in market rules.

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Earnings management among bankrupt non-listed firms: evidence from Spain

Cited by 22 publications

References 39 publications

Effect of upper echelons’ demographic characteristics on earnings management in troubled non-listed companies in Nigeria

Effect of upper echelons’ demographic characteristics on earnings management in troubled non-listed companies in Nigeria

Gestión de ganancias en el riesgo de quiebra de las empresas públicas mexicanas

Detecting Creative Accounting in Businesses in Financial Distress

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