This study aims to analyze the effect on accounting conservatism of IFRS adoption in Spain. Following evidence found in previous studies we expect a decline in balance-sheet accounting conservatism due to this change towards a more Anglo-Saxon accounting system. Using a sample of Spanish and UK...

Prior research documents an anomalous negative price–earnings relation when a simple earnings capitalization model is estimated for loss-making firms. Collins et al. (1999) suggest that the model is misspecified due to the omission of book value of equity. However, results from previous...

The poor stock price performance of firms that raise capital through seasoned equity offerings is one of the recent puzzles in financial literature. In this study we investigate whether pre-issue earnings management can explain these results for rights issues in Spain. Consistent with this...