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 this 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
situacion in Spain. The study tries to demonstrate that some accounting
practices ...
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 this 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
situacion 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.
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