This study examines the impact of the Financial Act 44|2002 (FA henceforth) on audit quality in Spain. Our goal is to provide empirical evidence on whether the audit reforms recommended by the EU and introduced under the FA actually result in higher audit quality. These audit reforms introduce...

Purpose: The study aims to show how the public interest has been argued to justify the political interference in the accounting of financial entities as a tool to face a critical financial situation in a country. And to offer a different perspective of the publicness notion that focuses on the...

Prior literature argues that managers make opportunistic income-decreasing accounting choices to limit the concessions made to trade unions. However, empirical research to date presents mixed evidence, potentially due to the theoretical approach common in prior work that views labor bargaining...

We investigate the role of prudential supervisors' independence in affecting income smoothing behavior in European banks. Powerful national supervisors are predicted to influence the accounting practices of their supervised entities, shaping the properties of the accounting numbers they prepare....

As a result of the recent financial crisis, several key institutions urged the IASB and the FASB to re-evaluate their models for loan loss accounting and use more forward-looking information. The paper examines the principal features of the new expected loss approach, taking into account the...