Manuel Cano Rodríguez | Universidad de Jaén (original) (raw)

Papers by Manuel Cano Rodríguez

Spanish Journal of Finance and Accounting, Jan 2, 2016

SSRN Electronic Journal, 2020

Previous research shows that religiosity is associated with more ethical business decisions, as w... more Previous research shows that religiosity is associated with more ethical business decisions, as well as with more conservative and less risk-prone decisions. Along this line, some research documents a positive relationship between religiosity and higher quality accounting information, measured by different quantitative characteristics of financial information. Different from previous research, this paper focuses on the narrative sections of financial statements. Specifically, we analyze whether religiosity has any influence on the readability of annual reports. Our results show that firms located in highly religious areas provide annual reports with higher readability, consistent with the positive relationship between religiosity and financial information quality. Additionally, our results reveal that religiosity has both a direct influence on readability, that we attribute to a more ethical behavior, and an indirect influence in consequence of a greater risk aversion. The direct influence (ethical behavior) is stronger than the indirect one (risk aversion).

Revista de Contabilidad - Spanish Accounting Review, 1998

La actualización de balances de 1996, por ceñirse casi en exclusiva a la revalorización del inmov... more La actualización de balances de 1996, por ceñirse casi en exclusiva a la revalorización del inmovilizado material, entendemos que contablemente supone una solución parcial al problema de la inflación. Paro acreditar dicha hipótesis escogemos las principales partidas del balance que, estando afectadas igual mente por las variaciones de precios, quedan fuero de su ámbito-inmovilizado imnaterial, existencias, valores mobiliarios, Fondo de reversión-, y las analizamos con el fin de detenninar si desde un punto de vista económico es justificable o no la rectificación de sus valores. En todas hallamos argumentos para su revaluación, aunque descubrimos asimismo que la solución a los efectos inflacionistas, en pa11icular respecto a ciertos casos, posiblemente tenga que pasar en adelante por una revisión profunda de los cri terios de valoración aplicados hoy día. Palabras clave: actualización de balances, contabilidad de iliflación, revalorización.

Social Science Research Network, Oct 21, 2015

Revista de Contabilidad - Spanish Accounting Review, 1998

La actualización de balances de 1996, por ceñirse casi en exclusiva a la revalorización del inmov... more La actualización de balances de 1996, por ceñirse casi en exclusiva a la revalorización del inmovilizado material, entendemos que contablemente supone una solución parcial al problema de la inflación Para acreditar dicha hipótesis escogemos las principales partidas del balance que, estando afectadas igualmente por las variaciones de precios, quedan fuera de su ámbito -inmovilizado inmaterial, existencias, valores mobiliarios, Fondo de reversión-, y las analizamos con el fin de determinar si desde un punto de vista económico es justificable o no la rectificación de sus valores. En todas hallamos argumentos para su revaluación, aunque descubrimos asimismo que la solución a los efectos inflacionistas, en particular respecto a ciertos casos, posiblemente tenga que pasar en adelante por una revisión profunda de los criterios de valoración aplicados hoy día. We think that the balance sheet updating of 1996, adjusted nearly exclusively to the revaluation of the material fixed assets, means...

This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruef... more This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruefli on the review of Bowman’s paradox by Nickel and Rodríguez, published in the February 2002 issue of Omega. In their commentary, the authors describe an article, published in the 1992 issue of Decision Sciences but not covered by the review, and claim that they had previously overcome three of the outstanding problems noted in Nickel and Rodríguez’s review. This reply to the commentary proves that the conclusions drawn in the review by Nickel and Rodríguez are relevant in spite of the Brockett et al. arguments against them. In this reply, we show that the paper by Brockett et al. neither explains Bowman’s paradox nor resolves its underlying problems. First, the definitions of risk and return measures are mathematically linked, and second, a cross-sectional methodology is used. We also provide our opinion on what would be necessary to bear in mind in order to extend any conclusion from B...

Omega-international Journal of Management Science, 2003

This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruef... more This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruefli on the review of Bowman's paradox by Nickel and Rodriguez, published in the February 2002 issue of Omega. In their commentary, the authors describe an article, published in the 1992 issue of Decision Sciences but not covered by the review, and claim that they had previously overcome three of the outstanding problems noted in Nickel and Rodriguez's review. This reply to the commentary proves that the conclusions drawn in the review by Nickel and Rodriguez are relevant in spite of the Brockett et al. arguments against them. In this reply, we show that the paper by Brockett et al. neither explains Bowman's paradox nor resolves its underlying problems. First, the definitions of risk and return measures are mathematically linked, and second, a cross-sectional methodology is used. We also provide our opinion on what would be necessary to bear in mind in order to extend any concl...

SSRN Electronic Journal, 2008

Abstract: This paper studies the relevance of audit qualifications and auditor selection for the ... more Abstract: This paper studies the relevance of audit qualifications and auditor selection for the external stakeholders of private companies in code-law countries. Employing a sample of private Spanish firms, we find that the cost of debt is not influenced by auditor opinion, but ...

SSRN Electronic Journal, 2011

Tradicionalmente, el riesgo total de la empresa se ha desglosado en dos componentes: riesgo siste... more Tradicionalmente, el riesgo total de la empresa se ha desglosado en dos componentes: riesgo sistematico y riesgo especifico. No obstante, la investigacion sobre el concepto de riesgo ha estado claramente volcada sobre el primero de ellos. La causa de este sesgo en la investigacion viene motivada por la conclusion financiera de que el riesgo sistematico es el unico relevante para el inversor, puesto que el especifico puede ser eliminado por simple diversificacion. En cuanto al riesgo especifico, esta empezando a ser tenido en cuenta en los ultimos anos dentro de la teoria de la organizacion, debido a la relevancia de este tipo de riesgo para el directivo. Este articulo demuestra que, a pesar de que, segun la teoria financiera, los directivos deben centrarse en la gestion del riesgo sistematico, el directivo tiende a gestionar el riesgo especifico, si bien, solo una parte de este riesgo -a la que hemos denominado riesgo tactico- depende de la mayor o menor propension del directivo fre...

During the last few years, the importance of the research on Bowman '$ Paradox -the negative ... more During the last few years, the importance of the research on Bowman '$ Paradox -the negative relations­ hip between accounting measures of risk and retum- has grown. Nevertheless, research has mostly been focused on studying the causes of the negative accounting relation, instead of explaining how, two diffe­ rent types of risk-retum relationship can coexist: negative for the accounting indicators and positive for the market indicators. In this study, we develop a mathematical model, based on the Residual lncome Valuation Model for making both kinds of relations compatible. Our results show that there exists a posi­ tive relationship between the accounting measures of risk and the market measures of risk and retum, bul a negative influence of the accounting profitability on both market variables.

... Autores: Fernando Moreno Bonilla, Manuel Cano Rodríguez; Editores: ANAYA MULTIMEDIA; Año de p... more ... Autores: Fernando Moreno Bonilla, Manuel Cano Rodríguez; Editores: ANAYA MULTIMEDIA; Año de publicación: 2008; País: España; Idioma: Español; ... de Inversiones 5.1.1. El Plazo de Recuperación 5.1.2. Función VNA para el cálculo del Valor Actualizado Neto (VAN) 5.1.2 ...

Our research examines information provided by a private Spanish company, brewery El Alcazar, on t... more Our research examines information provided by a private Spanish company, brewery El Alcazar, on the changes that have occurred over the period 1928–93, with the aim of advancing knowledge of accounting through historical analysis, and by studying the dependencies of the organization on its environment. More specifically, we apply thematic content analysis to the evolution of external information, "Memoria", i.e. the qualitative information contained in the annual report, which is in fact a management report (MR) to the shareholders, and internal information, i.e. the minutes of the Board of Directors (MBD) and the minutes of the Shareholder General Meeting (MSGM). We analyse them with the aim of studying whether the content of the documents adapts to the different institutional settings that the company has been through. Both documents are compulsory: MR by the Articles of Association and the minutes by the Commercial Code of 1885, Codigo de Comercio de 1885. However, our ...

To date, the validity of empirical Bowman’s paradox papers that employ mean-variance approach for... more To date, the validity of empirical Bowman’s paradox papers that employ mean-variance approach for testing the risk/return relationship are inherently unverifiable and their results cannot be generalized. However, this problem can be overcome by developing an econometric model with two fundamental characteristics. The first one is the use of a time series model for each firm, avoiding the traditional cross-sectional analysis. The other one is to estimate a model with a single variable (the firm rate of return), but whose expectation and variance are mathematically related according to behavioral theories hypotheses, forming a heterocedastic model similar to “GARCH”. Our results agree with behavioral theories and show that these theories can also be carry out with market measures. Visiting scholar. Carlos III University. Department of Business Economics. C/ Madrid, 126; 28903 Getafe-Madrid (Spain). Phone:+34-91-624-58-46. Fax.: +34-91-624-96-07. E-mail: mnunez@emp.uc3m.es Scholar assi...

El libro esta planteado como un manual que sirva de iniciacion al mundo de la economia financiera... more El libro esta planteado como un manual que sirva de iniciacion al mundo de la economia financiera en general, y de las finanzas corporativas en particular. Esta dirigido a aquellas personas que inicien su formacion en gestion de empresas para que les sirva de introduccion a las finanzas corporativas presentandoles las lineas basicas de la disciplina. Por otro lado, tambien es un libro que puede resultar util para aquellos que realicen sus estudios en otros grados universitarios que requieran conocimientos basicos sobre gestion empresarial (particularmente en el area financiera) como complemento a su formacion. El manual esta dividido en cuatro partes en las que se abordan los conceptos y tecnicas necesarios para afrontar los problemas de inversion y financiacion empresariales, sin entrar en una complejidad excesiva, dado el caracter introductorio de la obra. En la primera parte se realiza una presentacion de la funcion que cumplen las finanzas en las empresas, analizando que decisio...

SSRN Electronic Journal

Previous research has shown that costs exhibit a sticky behavior: Costs increases when sales rise... more Previous research has shown that costs exhibit a sticky behavior: Costs increases when sales rise are larger than cost decreases when sales drop. Given that the traditional accrual models rely on the assumption of costs responding equally to sales increases and to sales decreases, the sticky behavior of costs can make these models misspecified. In this paper, we analyze how cost stickiness affects to three of the most common accrual models –the Jones model (J. Jones, 1991), the Dechow and Dichev model (P. Dechow & Dichev, 2002), and the McNichols model (Maureen McNichols, 2002)– and provide modifications of those models to control for cost stickiness. Our results show that the Jones model is misspecified in sumbsamples of sales decreases, whereas the Dechow and Dichev model and the McNichols model are misspeficied in both samples of sales increases and sales decreases. Controlling for the sign of the sales variation contributes to mitigate such misspecification, as well as to increase their power for detecting positive manipulations in sales-decreasing companies and negative manipulations in sales-increasing companies.

Sustainability

This study analyzes how learning about social responsibility (SR) can modify the perceptions of u... more This study analyzes how learning about social responsibility (SR) can modify the perceptions of university students about the importance of responsible behavior on the part of companies. To this end, a questionnaire was designed and administered to Management Accounting students before (n = 128) and after (n = 71) receiving two training activities on SR. The descriptive results obtained testify to the importance of SR in the views of the sampled students, both before and after receiving the specific learning in SR. In this latter moment, students demonstrated a vision highly committed to the need for SR to be part of the economic agenda. The results also show that there was a significant change in the perception of SR and its implications in terms of benefits and costs before and after receiving the training. All of this suggests that SR training has partially modified students’ perceptions of SR. This paper provides important insights that could be leveraged by university and busin...

Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad

ABSTRACT Despite the advantages of Structural Equation Modelling (SEM) over regression models tha... more ABSTRACT Despite the advantages of Structural Equation Modelling (SEM) over regression models that have contributed to its popularisation in several fields of research in social sciences, it has not been broadly applied in archival accounting research. In this paper, we present a guidance for the application of SEM – and, particularly, the Partial Least Squares (PLS) method – to the (arguably) most recurrent topic on empirical archival accounting research: earnings quality. We highlight several problems that arise in earnings quality measuring, indicating how PLS can help to overcome them. We also run a simulation process whose results show that PLS method outperforms the other approaches even in situations of limited information.

Revista de Contabilidad

There is a generalized consensus among accounting researchers about the multidimensional nature o... more There is a generalized consensus among accounting researchers about the multidimensional nature of earnings quality: Earnings quality depends on a series of characteristics that enhance the usefulness of the earnings figure for decision making. In this paper, we undertake a literature revision on empirical research on earnings quality that reveals that, although earnings quality is probably the most recurrent topic in accounting, empirical research that have treated earnings quality as a multidimensional concept is almost inexistent. In this sense, we document that: (1) Most of the empirical papers on earnings quality deal with just one earnings characteristic, not including the potential effect of the other characteristics related to earnings quality. (2) Some characteristics (particularly, accruals quality and, in a lesser way, conservatism) are widely employed for representing earnings quality, whereas other characteristics (smoothness, persistence) are much less used by research...

Spanish Journal of Finance and Accounting, Jan 2, 2016

SSRN Electronic Journal, 2020

Previous research shows that religiosity is associated with more ethical business decisions, as w... more Previous research shows that religiosity is associated with more ethical business decisions, as well as with more conservative and less risk-prone decisions. Along this line, some research documents a positive relationship between religiosity and higher quality accounting information, measured by different quantitative characteristics of financial information. Different from previous research, this paper focuses on the narrative sections of financial statements. Specifically, we analyze whether religiosity has any influence on the readability of annual reports. Our results show that firms located in highly religious areas provide annual reports with higher readability, consistent with the positive relationship between religiosity and financial information quality. Additionally, our results reveal that religiosity has both a direct influence on readability, that we attribute to a more ethical behavior, and an indirect influence in consequence of a greater risk aversion. The direct influence (ethical behavior) is stronger than the indirect one (risk aversion).

Revista de Contabilidad - Spanish Accounting Review, 1998

La actualización de balances de 1996, por ceñirse casi en exclusiva a la revalorización del inmov... more La actualización de balances de 1996, por ceñirse casi en exclusiva a la revalorización del inmovilizado material, entendemos que contablemente supone una solución parcial al problema de la inflación. Paro acreditar dicha hipótesis escogemos las principales partidas del balance que, estando afectadas igual mente por las variaciones de precios, quedan fuero de su ámbito-inmovilizado imnaterial, existencias, valores mobiliarios, Fondo de reversión-, y las analizamos con el fin de detenninar si desde un punto de vista económico es justificable o no la rectificación de sus valores. En todas hallamos argumentos para su revaluación, aunque descubrimos asimismo que la solución a los efectos inflacionistas, en pa11icular respecto a ciertos casos, posiblemente tenga que pasar en adelante por una revisión profunda de los cri terios de valoración aplicados hoy día. Palabras clave: actualización de balances, contabilidad de iliflación, revalorización.

Social Science Research Network, Oct 21, 2015

Revista de Contabilidad - Spanish Accounting Review, 1998

La actualización de balances de 1996, por ceñirse casi en exclusiva a la revalorización del inmov... more La actualización de balances de 1996, por ceñirse casi en exclusiva a la revalorización del inmovilizado material, entendemos que contablemente supone una solución parcial al problema de la inflación Para acreditar dicha hipótesis escogemos las principales partidas del balance que, estando afectadas igualmente por las variaciones de precios, quedan fuera de su ámbito -inmovilizado inmaterial, existencias, valores mobiliarios, Fondo de reversión-, y las analizamos con el fin de determinar si desde un punto de vista económico es justificable o no la rectificación de sus valores. En todas hallamos argumentos para su revaluación, aunque descubrimos asimismo que la solución a los efectos inflacionistas, en particular respecto a ciertos casos, posiblemente tenga que pasar en adelante por una revisión profunda de los criterios de valoración aplicados hoy día. We think that the balance sheet updating of 1996, adjusted nearly exclusively to the revaluation of the material fixed assets, means...

This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruef... more This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruefli on the review of Bowman’s paradox by Nickel and Rodríguez, published in the February 2002 issue of Omega. In their commentary, the authors describe an article, published in the 1992 issue of Decision Sciences but not covered by the review, and claim that they had previously overcome three of the outstanding problems noted in Nickel and Rodríguez’s review. This reply to the commentary proves that the conclusions drawn in the review by Nickel and Rodríguez are relevant in spite of the Brockett et al. arguments against them. In this reply, we show that the paper by Brockett et al. neither explains Bowman’s paradox nor resolves its underlying problems. First, the definitions of risk and return measures are mathematically linked, and second, a cross-sectional methodology is used. We also provide our opinion on what would be necessary to bear in mind in order to extend any conclusion from B...

Omega-international Journal of Management Science, 2003

This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruef... more This issue of Omega contains a commentary by P.L. Brockett, W.W. Cooper, K.H. Kwon, and T.W. Ruefli on the review of Bowman's paradox by Nickel and Rodriguez, published in the February 2002 issue of Omega. In their commentary, the authors describe an article, published in the 1992 issue of Decision Sciences but not covered by the review, and claim that they had previously overcome three of the outstanding problems noted in Nickel and Rodriguez's review. This reply to the commentary proves that the conclusions drawn in the review by Nickel and Rodriguez are relevant in spite of the Brockett et al. arguments against them. In this reply, we show that the paper by Brockett et al. neither explains Bowman's paradox nor resolves its underlying problems. First, the definitions of risk and return measures are mathematically linked, and second, a cross-sectional methodology is used. We also provide our opinion on what would be necessary to bear in mind in order to extend any concl...

SSRN Electronic Journal, 2008

Abstract: This paper studies the relevance of audit qualifications and auditor selection for the ... more Abstract: This paper studies the relevance of audit qualifications and auditor selection for the external stakeholders of private companies in code-law countries. Employing a sample of private Spanish firms, we find that the cost of debt is not influenced by auditor opinion, but ...

SSRN Electronic Journal, 2011

Tradicionalmente, el riesgo total de la empresa se ha desglosado en dos componentes: riesgo siste... more Tradicionalmente, el riesgo total de la empresa se ha desglosado en dos componentes: riesgo sistematico y riesgo especifico. No obstante, la investigacion sobre el concepto de riesgo ha estado claramente volcada sobre el primero de ellos. La causa de este sesgo en la investigacion viene motivada por la conclusion financiera de que el riesgo sistematico es el unico relevante para el inversor, puesto que el especifico puede ser eliminado por simple diversificacion. En cuanto al riesgo especifico, esta empezando a ser tenido en cuenta en los ultimos anos dentro de la teoria de la organizacion, debido a la relevancia de este tipo de riesgo para el directivo. Este articulo demuestra que, a pesar de que, segun la teoria financiera, los directivos deben centrarse en la gestion del riesgo sistematico, el directivo tiende a gestionar el riesgo especifico, si bien, solo una parte de este riesgo -a la que hemos denominado riesgo tactico- depende de la mayor o menor propension del directivo fre...

During the last few years, the importance of the research on Bowman '$ Paradox -the negative ... more During the last few years, the importance of the research on Bowman '$ Paradox -the negative relations­ hip between accounting measures of risk and retum- has grown. Nevertheless, research has mostly been focused on studying the causes of the negative accounting relation, instead of explaining how, two diffe­ rent types of risk-retum relationship can coexist: negative for the accounting indicators and positive for the market indicators. In this study, we develop a mathematical model, based on the Residual lncome Valuation Model for making both kinds of relations compatible. Our results show that there exists a posi­ tive relationship between the accounting measures of risk and the market measures of risk and retum, bul a negative influence of the accounting profitability on both market variables.

... Autores: Fernando Moreno Bonilla, Manuel Cano Rodríguez; Editores: ANAYA MULTIMEDIA; Año de p... more ... Autores: Fernando Moreno Bonilla, Manuel Cano Rodríguez; Editores: ANAYA MULTIMEDIA; Año de publicación: 2008; País: España; Idioma: Español; ... de Inversiones 5.1.1. El Plazo de Recuperación 5.1.2. Función VNA para el cálculo del Valor Actualizado Neto (VAN) 5.1.2 ...

Our research examines information provided by a private Spanish company, brewery El Alcazar, on t... more Our research examines information provided by a private Spanish company, brewery El Alcazar, on the changes that have occurred over the period 1928–93, with the aim of advancing knowledge of accounting through historical analysis, and by studying the dependencies of the organization on its environment. More specifically, we apply thematic content analysis to the evolution of external information, "Memoria", i.e. the qualitative information contained in the annual report, which is in fact a management report (MR) to the shareholders, and internal information, i.e. the minutes of the Board of Directors (MBD) and the minutes of the Shareholder General Meeting (MSGM). We analyse them with the aim of studying whether the content of the documents adapts to the different institutional settings that the company has been through. Both documents are compulsory: MR by the Articles of Association and the minutes by the Commercial Code of 1885, Codigo de Comercio de 1885. However, our ...

To date, the validity of empirical Bowman’s paradox papers that employ mean-variance approach for... more To date, the validity of empirical Bowman’s paradox papers that employ mean-variance approach for testing the risk/return relationship are inherently unverifiable and their results cannot be generalized. However, this problem can be overcome by developing an econometric model with two fundamental characteristics. The first one is the use of a time series model for each firm, avoiding the traditional cross-sectional analysis. The other one is to estimate a model with a single variable (the firm rate of return), but whose expectation and variance are mathematically related according to behavioral theories hypotheses, forming a heterocedastic model similar to “GARCH”. Our results agree with behavioral theories and show that these theories can also be carry out with market measures. Visiting scholar. Carlos III University. Department of Business Economics. C/ Madrid, 126; 28903 Getafe-Madrid (Spain). Phone:+34-91-624-58-46. Fax.: +34-91-624-96-07. E-mail: mnunez@emp.uc3m.es Scholar assi...

El libro esta planteado como un manual que sirva de iniciacion al mundo de la economia financiera... more El libro esta planteado como un manual que sirva de iniciacion al mundo de la economia financiera en general, y de las finanzas corporativas en particular. Esta dirigido a aquellas personas que inicien su formacion en gestion de empresas para que les sirva de introduccion a las finanzas corporativas presentandoles las lineas basicas de la disciplina. Por otro lado, tambien es un libro que puede resultar util para aquellos que realicen sus estudios en otros grados universitarios que requieran conocimientos basicos sobre gestion empresarial (particularmente en el area financiera) como complemento a su formacion. El manual esta dividido en cuatro partes en las que se abordan los conceptos y tecnicas necesarios para afrontar los problemas de inversion y financiacion empresariales, sin entrar en una complejidad excesiva, dado el caracter introductorio de la obra. En la primera parte se realiza una presentacion de la funcion que cumplen las finanzas en las empresas, analizando que decisio...

SSRN Electronic Journal

Previous research has shown that costs exhibit a sticky behavior: Costs increases when sales rise... more Previous research has shown that costs exhibit a sticky behavior: Costs increases when sales rise are larger than cost decreases when sales drop. Given that the traditional accrual models rely on the assumption of costs responding equally to sales increases and to sales decreases, the sticky behavior of costs can make these models misspecified. In this paper, we analyze how cost stickiness affects to three of the most common accrual models –the Jones model (J. Jones, 1991), the Dechow and Dichev model (P. Dechow & Dichev, 2002), and the McNichols model (Maureen McNichols, 2002)– and provide modifications of those models to control for cost stickiness. Our results show that the Jones model is misspecified in sumbsamples of sales decreases, whereas the Dechow and Dichev model and the McNichols model are misspeficied in both samples of sales increases and sales decreases. Controlling for the sign of the sales variation contributes to mitigate such misspecification, as well as to increase their power for detecting positive manipulations in sales-decreasing companies and negative manipulations in sales-increasing companies.

Sustainability

This study analyzes how learning about social responsibility (SR) can modify the perceptions of u... more This study analyzes how learning about social responsibility (SR) can modify the perceptions of university students about the importance of responsible behavior on the part of companies. To this end, a questionnaire was designed and administered to Management Accounting students before (n = 128) and after (n = 71) receiving two training activities on SR. The descriptive results obtained testify to the importance of SR in the views of the sampled students, both before and after receiving the specific learning in SR. In this latter moment, students demonstrated a vision highly committed to the need for SR to be part of the economic agenda. The results also show that there was a significant change in the perception of SR and its implications in terms of benefits and costs before and after receiving the training. All of this suggests that SR training has partially modified students’ perceptions of SR. This paper provides important insights that could be leveraged by university and busin...

Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad

ABSTRACT Despite the advantages of Structural Equation Modelling (SEM) over regression models tha... more ABSTRACT Despite the advantages of Structural Equation Modelling (SEM) over regression models that have contributed to its popularisation in several fields of research in social sciences, it has not been broadly applied in archival accounting research. In this paper, we present a guidance for the application of SEM – and, particularly, the Partial Least Squares (PLS) method – to the (arguably) most recurrent topic on empirical archival accounting research: earnings quality. We highlight several problems that arise in earnings quality measuring, indicating how PLS can help to overcome them. We also run a simulation process whose results show that PLS method outperforms the other approaches even in situations of limited information.

Revista de Contabilidad

There is a generalized consensus among accounting researchers about the multidimensional nature o... more There is a generalized consensus among accounting researchers about the multidimensional nature of earnings quality: Earnings quality depends on a series of characteristics that enhance the usefulness of the earnings figure for decision making. In this paper, we undertake a literature revision on empirical research on earnings quality that reveals that, although earnings quality is probably the most recurrent topic in accounting, empirical research that have treated earnings quality as a multidimensional concept is almost inexistent. In this sense, we document that: (1) Most of the empirical papers on earnings quality deal with just one earnings characteristic, not including the potential effect of the other characteristics related to earnings quality. (2) Some characteristics (particularly, accruals quality and, in a lesser way, conservatism) are widely employed for representing earnings quality, whereas other characteristics (smoothness, persistence) are much less used by research...