EconPapers    
Economics at your fingertips  
 

The ethics of creative accounting: Some Spanish evidence

Oriol Amat (), John Blake and Ester Oliveras ()

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: 'Creative accounting' involves accountants in making accounting policy choices or manipulating transactions in such a way as to give the impression in the accounts that they prefer. While regarded as unethical by most observers, a defence of creative accounting can be based on the ability of the users of accounts to identify bias in accounting policy choices and make appropriate adjustments. In this paper we take the example of the Barcelona Football Club where the club management made three key accounting policy choices that presented a favourable position, and a supporters' club presented an alternative report choosing three alternative accounting policies that presented an unfavourable position. We presented each of these financial reports to one of two groups of Spanish bank loan offices, with supporting notes making the impact of the accounting policy choices clear. We found that the more favourable set of accounts was significantly more likely to attract a positive response to a loan request. This result undermines the defence for creative accounting, based on the ability of users to identify manipulation.

Keywords: Creative accounting; ethics; Spain (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2000-03
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
https://econ-papers.upf.edu/papers/455.pdf Whole Paper (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:455

Access Statistics for this paper

More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Series data maintained by ().

 
Page updated 2018-01-16
Handle: RePEc:upf:upfgen:455