Assessing earnings management in european publicly traded firms

We investigate if investors may benefit from using the accruals quality measure to assess the level of earnings management exercised by firms when preparing their accounting statements. More earnings management is expected to be associated with high information asymmetry among stock market participants because it makes earnings information less precise, thus providing an information advantage to informed investors relative to liquidity traders. Our results based on a sample of European publicly traded firms are consistent with a positive association between earnings management and information asymmetry. However, given some previous studies suggesting that accruals based measures may be noisy indicators of earnings management we further develop and test a method to enhance the performance of accruals quality in detecting earnings management.

Assessing Earnings Management in European Publicly Traded Firms

We investigate if investors may benefit from using the accruals quality measure to assess the level of earnings management exercised by firms when preparing their accounting statements. More earnings management is expected to be associated with high information asymmetry among stock market participants because it makes earnings information less precise, thus providing an information advantage to informed investors relative to liquidity traders. Our results based on a sample of European publicly traded firms are consistent with a positive association between earnings management and information asymmetry. However, given some previous studies suggesting that accruals based measures may be noisy indicators of earnings management we further develop and test a method to enhance the performance of accruals quality in detecting earnings management

The Routledge companion to accounting and risk

To date, there has been little consideration of the many different ways in which accounting and risk intersect, despite organisations being more determined than ever to build resilience against potential risks. This comprehensive volume overcomes this gap by providing an overview of the field, drawing together current knowledge of risk in a wide range of different accounting contexts.

The water-food nexus and the role of demand management

With the global population projected to reach 9 billion in 2050, demand for food is expected to increase by over 50% in 2030 and 70% in 2050 (UN-Water, 2013). Already agriculture is the largest user of water with irrigation accounting for nearly 70% of all freshwater withdrawals (UN-Water, 2016).

Determinants of environmental accounting and reporting practices in portuguese local entities

Purpose – The purpose of this paper is to develop environmental accounting and reporting practices (EARPs) by Portuguese local entities and their determining factors. Design/methodology/approach – Data were obtained through a postal survey. In order to measure the degree of development of environmental accounting and reporting practices index was developed, which reflects the extent to which a set of eight EARPs have been implemented by the 69 Portuguese local entities included in the sample. Three variables are considered in this study as possible factors that drive the development of environmental management practices (EMPs) by local entities, namely, size of entity, accounting framework, degree of development of EMPs. Findings – Results indicate the degree of development of EARPs in Portuguese local entities is low. Additionally, accounting regulation and the degree of development of EMPs are explaining factors of the degree of development of environmental accounting practices in Portuguese local entities. Originality/value – This study adds to the international research on environmental accounting in public sector by providing empirical data from a country, Portugal, where empirical evidence is still relatively limited.

The Influence of Accounting Information in the Re-Election of the Mayors in Portugal

The changes recommended by the New Public Management (NPM) in public accounting have given special attention and importance to the evaluation of mayor’s performance by citizens/voters. Thus, this study aims to assess the impact of accounting information on the re-election of Portuguese mayors. Taking the agency theory as a point of departure, we start from the following research question: Does the accounting information disclosed by the municipalities influence the re-election of Portuguese mayors? The research methodology used in this study is the quantitative type, through which a multivariate analysis of data was performed on 308 Portuguese municipalities, in the period 2005-2008, based on the election results of 2009. The results from the binary logistic regression show that some indicators of accounting nature have impact on the re-election of mayors in Portugal, namely, the components of financial accounting and municipal revenues.

Quantifying recreational shore angling catch and harvest in southern Portugal (north-east Atlantic Ocean): implications for conservation and integrated fisheries management

Recreational shore fishing along 250 km of the south and south-west coast of Portugal was studied based on roving creel and aerial surveys. Surveys were conducted between August 2006 and July 2007, following a stratified random-sampling design and provided information on catch and effort, harvest and discards, angler demographics and fishing habits. Overall, 192 roving creel surveys, 24 aerial surveys and 1321 interviews were conducted. Based on the aerial surveys, a mean +/- s.e. total fishing effort of 705 236 +/- 32 765 angler h year(-1) was estimated, corresponding to 166 430 +/- 9792 fishing trips year(-1). Average time spent per fishing trip was 4.7 h. A total of 48 species, belonging to 22 families, were recorded in roving creel surveys. The most important species was Diplodus sargus, accounting for 44% of the total catches by number and 48% by mass. Estimated mean +/- s.e. total annual recreational shore fishing catch was 160.2 +/- 12.6 t year(-1) (788 049 +/- 54 079 fishes year(-1)), of which 147.4 +/- 11.9 t year(-1) (589 132 +/- 42 360 fishes year(-1)) was retained. Although overall shore-based recreational catches only corresponded to 0.8% of the commercial landings (only common species considered), D. sargus catches by recreational shore anglers were considerable, corresponding to 65% of the commercial landings. The implications of these results for integrated fisheries management and conservation are discussed, and future research proposed.