COMMONS DEED

-0.107
-0.099
-0.091
-0.084
-0.076
-0.069
-0.061
-0.053
-0.046
-0.038
-0.030
-0.023
-0.015
-0.008
0.000
0.008
0.015
0.023
0.030
0.038
0.046
0.053
0.061
0.069
0.076
0.084
0.091
0.099
0.107
0.114
0.122
-0.152
-0.141
-0.131
-0.120
-0.109
-0.098
-0.087
-0.076
-0.065
-0.054
-0.044
-0.033
-0.022
-0.011
0.000
0.011
0.022
0.033
0.044
0.054
0.065
0.076
0.087
0.098
0.109
0.120
0.131
0.141
0.152
0.163
0.174
Laura Parte Esteban, María Jesús Such Devesa & Pilar Alberca Oliver
Panel D: Changes in Net Income distribution (ΔNI/AT t-1 )
Big 4 auditors
Non Big 4 auditors
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
CONCLUSIONS
This paper focuses on earnings benchmarks in Spanish hotel industry.
We examine a fundamental industry for Spanish economy (its
contribution to GDP is around 12% and it is essential for employment
(12%) and balance of payments covering 60% of commercial deficit in
2009). This industry presents special characteristic that can justify a
particularly analysis. Since mid-nineties, Spanish hotel firms are involved
in a globalization process. Bank debt becomes the main source of
financing for this industry in their expansion abroad due to the small
dimension of the firms. The difficulties to access to financial markets to
find resources and their dependence to financial firms are pressure factors
that can motivate managers to carry out adjustments in the reported
financial information. It is also noted that small firms do not have strict
controls and supervisions over the financial reporting.
This paper examines earnings benchmarks in Spanish hotel industry
as a proxy to earnings management using frequency histograms. The
evidence suggests that avoiding losses hypothesis is more relevant than
avoiding earnings decreases hypothesis. It is also noted that earnings
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