Equity Issues in the Spanish Stock Market: Windows of Opportunity, Earnings Management or Market Timing?

2005 ◽  
Author(s):  
José Emilio Farinós Viñas ◽  
C. Jose Garcia ◽  
Ana M. Ibáñez
Keyword(s):  
Stock Market ◽  
Earnings Management ◽  
Market Timing ◽  
Equity Issues ◽  
Windows Of Opportunity ◽  
Spanish Stock Market

Real options as a component of the market value of stocks: evidence from the Spanish Stock Market

2005 ◽  
Vol 37 (14) ◽  
pp. 1673-1691 ◽  
Author(s):  
Pablo de Andrés-Alonso ◽  
Valentín Azofra-Palenzuela ◽  
Gabriel de la Fuente-Herrero *
Keyword(s):  
Stock Market ◽  
Real Options ◽  
Market Value ◽  
Spanish Stock Market

scholarly journals Surplus Free Cash Flow, Stock Market Segmentations and Earnings Management: The Moderating Role of Independent Audit Committee

2020 ◽  
pp. 097215092093406
Author(s):  
Ahmad A. Toumeh ◽  
Sofri Yahya ◽  
Azlan Amran
Keyword(s):  
Stock Market ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Management Practices ◽  
Free Cash Flow ◽  
The Body ◽  
Moderating Role ◽  
Independent Audit

Management engages in earnings manipulation for different reasons. This article argues that low-growth firms with high free cash flow will opt for income-increasing earnings management in order to obscure the low profits derived from their investments in negative net present value (NPV) projects. On the other hand, we argue that the listed companies might be interested in being listed in the first market due to its privileges and to preserve the competitiveness, through managing their earnings upwardly, so that they can satisfy the condition of achieving a particular earnings limit. This article should advance the body of earnings management literature in the Jordanian context by examining the effect of the moderating role of an independent audit committee (IAC) in the association between surplus free cash flow (SFCF) and income-increasing discretionary accruals (DAC). Further, this is the initial empirical attempt to investigate the moderation effect of IAC between stock market segmentations (SMS) and positive DAC. The results of this current study offer original and beneficial information for the Jordanian government and other countries with a similar institutional environment because the study promotes the application of applying IAC as an efficient tool to constrain management behaviour towards manipulation of the accruals. On top of that, this research offers information concerning the prevailing situation of earnings management practices and corporate governance in Jordan, in which shareholders, local and international investors, policymakers, regulators and academic researchers are interested. Finally, panel data analyses and various statistical techniques are employed to derive conclusions.

scholarly journals Does herding affect volatility? Implications for the Spanish stock market

2012 ◽  
Vol 12 (2) ◽  
pp. 311-327 ◽  
Author(s):  
Natividad Blasco ◽  
Pilar Corredor ◽  
Sandra Ferreruela
Keyword(s):  
Stock Market ◽  
Spanish Stock Market

scholarly journals The sheaf of straight lines methodology. An application to the Spanish stock market

2014 ◽  
Vol 9 (2014) ◽  
pp. 68-89
Author(s):  
Ferrán Aranaz Magdalena ◽  
Márquez de la Cruz Elena
Keyword(s):  
Stock Market ◽  
Straight Lines ◽  
Spanish Stock Market

Earnings Management and Stock Liquidity

2021 ◽  
pp. 66-84
Author(s):  
Hakan Özkaya
Keyword(s):  
Stock Market ◽  
Earnings Management ◽  
Trading Volume ◽  
Management Practices ◽  
Positive Association ◽  
Discretionary Accruals ◽  
Market Liquidity ◽  
Stock Liquidity ◽  
Turnover Ratio ◽  
Liquidity Measures

This chapter tests whether the earnings management practices in Turkey are considered informative or opportunistic by outside investors by examining its effect on stock liquidity. Earnings management is measured by discretionary accruals calculated by two different competing methods. Stock liquidity is also proxied by two different measures: the illiquidity measure of Amihud and the turnover ratio. Amihud's illiquidity measure indicates firms' daily price responses associated with the trading volume and the turnover ratio indicates how many times a stock changes its owner in a year. Relevant control variables are also included in the models. A positive association between earnings management and stock liquidity implies informative earnings management and vice versa. Earnings management is found to be positively associated with stock market liquidity. Results favor the informative earnings management view for Turkish firms and are robust to alternative specifications of earnings management and stock liquidity measures.

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