Relationship among economic crisis, stock market crashes and accounting scandals

IF 1 Q4 MANAGEMENT

Intangible Capital Pub Date : 2023-05-15 DOI:10.3926/ic.2228

Pilar Lloret Millan, Núria Arimany Serrat

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引用次数: 0

Abstract

Purpose: This work investigates the relationships between stock exchange crashes and accounting scandals.Design/methodology: We analyze the main accounting scandals and stock exchange crashes that occurred between 1980 and 2020. Findings: First of all, it was verified that a stock market crash occurred in the years in which most of the accounting scandals took place (or within the next three years). This evidence is consistent with much of the previous literature. Second, an average of 5.4 years has been estimated as the period of time that elapses between the time a company starts engaging in accounting deception and the moment when it is discovered and the scandal breaks out. Third, it has been found that accounting deception is more likely to occur in years with stock market crashes and in the years immediately following. The literature review revealed no evidence supporting the two latter hypotheses.Research limitations/implications: This exploratory work has several limitations. First of all, only scandals that have been reported on websites in Spanish and English have been analyzed. Therefore, the sample may be biased, giving more weight to companies from Anglo-Saxon and Spanish-speaking countries. Second, the sample was made up of a small number of companies (53), which are those that have met the search criteria used.Practical implications: The findings of this work are relevant today, since a major stock exchange crash has occurred as a result of the coronavirus. Therefore, if the pattern of the most recent decades is repeated, it would be expected that more accounting scandals will come to light in the coming years.Social implications: The conclusions obtained are of great relevance for the different users of the financial information from companies, and also for auditors, consultants and supervisory bodies, since due to the stock exchange crash triggered by COVID-19, they will need to exercise extreme caution in the coming years in relation to financial information.Originality/value: The work provides evidence on the relationship between stock market crashes and accounting scandals, which is a highly relevant topic. The literature review revealed no study using the same methodology or a similar sample of companies.

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经济危机、股市崩盘和会计丑闻之间的关系

目的:研究证券市场崩盘与会计丑闻之间的关系。设计/方法:我们分析了1980年至2020年间发生的主要会计丑闻和股票交易所崩溃。发现:首先，我们验证了股市崩盘发生在大多数会计丑闻发生的年份(或在接下来的三年内)。这一证据与之前的许多文献一致。第二，从企业开始进行会计欺诈到被发现，到丑闻爆发，平均需要5.4年的时间。第三，人们发现，在股市崩盘的年份和随后的年份，会计欺诈更有可能发生。文献综述没有发现支持后两种假设的证据。研究局限性/启示:这项探索性工作有几个局限性。首先，只分析了西班牙语和英语网站上报道的丑闻。因此，样本可能有偏倚，给盎格鲁-撒克逊和西班牙语国家的公司更多权重。其次，样本由少数公司(53家)组成，这些公司符合所使用的搜索标准。实际意义:这项工作的发现在今天是相关的，因为冠状病毒导致了一场重大的证券交易所崩盘。因此，如果最近几十年的模式重演，预计未来几年将会有更多的会计丑闻曝光。社会影响:所获得的结论对于来自公司的财务信息的不同用户，以及审计师，顾问和监管机构具有很大的相关性，因为由于COVID-19引发的证券交易所崩溃，他们需要在未来几年对财务信息采取极端谨慎的态度。原创性/价值:该工作为股市崩盘与会计丑闻之间的关系提供了证据，这是一个高度相关的话题。文献综述显示，没有研究使用相同的方法或类似的公司样本。

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来源期刊

Intangible Capital MANAGEMENT-

CiteScore

1.50

自引率

16.70%

发文量

审稿时长

33 weeks

期刊介绍： The aim of Intangible Capital is to publish theoretical and empirical articles that contribute to contrast, extend and build theories that contribute to advance our understanding of phenomena related with management, and the management of intangibles, in organizations, from the perspectives of strategic management, human resource management, psychology, education, IT, supply chain management and accounting. The scientific research in management is grounded on theories developed from perspectives taken from a diversity of social sciences. Intangible Capital is open to publish articles that, from sociology, psychology, economics and industrial organization contribute to the scientific development of management and organizational science. Intangible Capital publishes scholar articles that contribute to contrast existing theories, or to build new theoretical approaches. The contributions can adopt confirmatory (quantitative) or explanatory (mainly qualitative) methodological approaches. Theoretical essays that enhance the building or extension of theoretical approaches are also welcome. Intangible Capital selects the articles to be published with a double bind, peer review system, following the practices of good scholarly journals. Intangible Capital publishes three regular issues per year following an open access policy. On-line publication allows to reduce publishing costs, and to make more agile the process of reviewing and edition. Intangible Capital defends that open access publishing fosters the advance of scientific knowledge, making it available to everyone. Intangible Capital publishes articles in English, Spanish and Catalan.