Earnings Benchmarks in International hotel firms

Laura Parte Esteban / María Jesús Such Devesa

Universidad Nacional de Educación a Distancia (UNED) / Universidad de Alcalá

This paper focuses on earnings management around earnings benchmarks (avoiding losses and earnings decreases hypothesis) in international firms and non international firms belonging to the Spanish hotel industry. First, frequency histograms are used to determine the existence of a discontinuity in earnings in both segments. Second, the use of discretionary accruals as a tool to meet earnings benchmarks is analysed in international and non international firms. Empirical evidence shows that international and non international firms meet earnings benchmarks. It is also noted different behaviour between international and non international firms.

KeyWords: Discretionary accruals; earnings benchmarks; frequency histograms; Spanish hotel industry

DOI: 10.5295/cdg.090191lp

Bibliographic: PARTE L. y SUCH M.J.: "Earnings Benchmarks en las empresas hoteleras internacionalizadas", Cuadernos de Gestión, Vol 11, nº 2, pp.15-36, DOI: 10.5295/cdg.090191lp

JEL Classification: M41, M21

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