Papers by Marco Trombetta
Journal of Accounting, Auditing & Finance, Jul 25, 2023
This article analyzes the association between earnings management and investor protection during ... more This article analyzes the association between earnings management and investor protection during banking crises. Using a sample of firms from 16 European countries for the period 2006–2018, we show that, as banking conditions worsen, firms are more likely to manage earnings upward in countries with a stronger institutional environment, where alternative sources of financing are better available and more accessible. Moreover, we show that this strategy is successful because these firms are able to raise relatively more equity financing. JEL Classification M41, G14
Journal of Accounting and Public Policy
Revista Contabilidade & Finanças, 2018
La evaluacion de la educacion financiera ha recibido una considerable atencion en los ultimos tie... more La evaluacion de la educacion financiera ha recibido una considerable atencion en los ultimos tiempos. Estudios recientes han revelado un nivel de educacion financiera basica sorprendentemente bajo entre la poblacion mundial. En el presente trabajo examinamos el nivel de educacion financiera a partir de una muestra de emprendedores individuales en Espana. A dicho efecto, formulamos un nuevo conjunto de preguntas relacionadas con la financiacion y el reporting financiero de la empresa. Los resultados obtenidos muestran que, tambien en el caso de Espana, el nivel general de educacion financiera basica es bastante bajo, si bien mejora ligeramente respecto a estudios anteriores. No detectamos diferencias significativas en el nivel de educacion financiera entre emprendedores y no emprendedores. Sin embargo, si constatamos que los emprendedores en serie exitosos comprenden mejor el principio de la diversificacion y el peligro potencial de un crecimiento descontrolado. Tambien cabe resenar...
In a model of repeated Cournot competition under complete information, we show that delegation ha... more In a model of repeated Cournot competition under complete information, we show that delegation has no effect on cartel stability if managers collude, while it may hinder cartel stability when owners collude in setting the incentive schemes. If owners can choose whether to delegate or keep control of their respective firms, and both groups of individuals collude or play noncooperatively in their respective variables according to the level of intertemporal discount factor, then if managers are not able to collude in output levels, owners' delegation decision is non-monotone in the discount factor.
Journal of Accounting and Public Policy, 2019
Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad, 2010
Theories have been developed in the disclosure literature to explain the reasons behind the decis... more Theories have been developed in the disclosure literature to explain the reasons behind the decision to disclose more information. Empirical evidence does not consistently support disclosure theories and results found are contradictory. The diffi culty in measuring voluntary disclosure might be one of the reasons infl uencing on these divergences. In this paper, we investigate two key questions related to disclosure measurement. First, we aim to empirically test if use of disclosure indices that measure different information attributes determines validity of disclosure theories. Second, we investigate how disclosure indices design infl uences results. Results show that determinants of more specifi c information attributes are different than those that infl uence less specifi c attributes. Furthermore, independently of the information attribute that is measured, disclosure measure design infl uences results. KEY WORDS Disclosure indices; Disclosure determinants; Forward-looking information; Disclosure theories. RESUMEN En la literatura sobre divulgación de información se han desarrollado diversas teorías para explicar los motivos que llevan a las empresas a divulgar más información. La evidencia empírica no apoya consistentemente las teorías y los resultados encontrados son contradictorios. Estas divergencias podrían estar ocasionadas por problemas implícitos a la medición de la información voluntaria. En este trabajo, se estudian dos cuestiones clave relacionadas con este problema. Primeramente, investigamos si el uso de índices de revelación que captan diferentes atributos informativos determina la validez de las teorías enunciadas sobre la divulgación de información. Por otro lado, analizamos la infl uencia de utilizar distintas medidas de la información. Los resultados muestran que los determinantes de atributos informativos más específi cos son distintos de aquellos factores que infl uyen en la divulgación de atributos menos específi cos. Además, independientemente del atributo informativo que es medido, el diseño de un índice de revelación infl uye en los resultados obtenidos. PALABRAS CLAVE Divulgación de información; Determinantes de la divulgación; Información previsional; Teorías sobre divulgación.
Revista de Contabilidad, 2009
Measurement of information disclosed by companies is a complex task. Accounting research usually ... more Measurement of information disclosed by companies is a complex task. Accounting research usually relies on disclosure indices to obtain a proxy for the information disclosed by companies. However, there is no consensus about the best design for these indices. The purpose of this paper is to investigate if there are significant differences among the indices that are used in disclosure studies. Three indices that measure disclosure of forward-looking information are compared: A "quality index" of a multidimensional nature; a "scope index" designed specifically to measure the scope of information, and a "quantity index" that measures information disclosed exclusively in terms of quantity. Results of the empirical analysis indicate that although the indices are correlated, they have a big impact in the rankings of companies. Evidence against the idea of the irrelevance of the particular index chosen is provided.
Journal of Business Finance & Accounting, 2007
The European Journal of Finance, 2021
Financial Reporting (FR) is a fundamental source of information for the correct functioning of ma... more Financial Reporting (FR) is a fundamental source of information for the correct functioning of markets. Traditionally, FR is associated with the communication activity done by firms to inform stake...
The purpose of this paper is to test empirically the relationship between two important concepts:... more The purpose of this paper is to test empirically the relationship between two important concepts: disclosure and liquidity. Using a sample of Spanish quoted firms between 1994 and 2000 we show that the estimation of the relationship between disclosure and liquidity depends crucially on two factors: a) the multidimensionality of the concept of liquidity; b) the use of an econometric methodology that deals properly with the features of the sample used. However the use of the Amihud (2002) illiquidity measure provides evidence in favour of a positive relationship between disclosure and liquidity.
Accounting and Business Research, 2009
Research on disclosure and capital markets focuses primarily on the amount of information provide... more Research on disclosure and capital markets focuses primarily on the amount of information provided but pays little attention to the presentation format of this information. This paper examines the impact of graph utilization and graph quality (distortion) on the cost of equity capital, controlling for the interaction between disclosure and graph distortion. Despite the advantages of graphs in communicating information, our results show that graph utilization does not have a significant impact on users' decisions. However we observe a significant (negative) association between graph distortion and the cost of equity. Moreover, we find that disclosure and graph distortion interact so that the impact of disclosure on the cost of capital depends on graph integrity. A significant negative association was found between the amount of information provided by companies and its cost of capital but this relation holds only for those companies that did not distort the graphs included in their annual reports. Results suggest that, for these companies, disclosure helps in reducing information asymmetry and the risk premium required by investors. The sign of the relationship is the inverse for distorting companies. Distorted graphs usually portray a more favourable image of the company, biasing users' perceptions upwards so that they require a lower risk premium. As the level of information increases, users' perceptions are corrected downwards and the cost of capital increases.
European Accounting Review
Cuadernos De Informacion Economica, 2014
Contemporary Issues in Accounting Regulation, 2001
7 THE REGULATION OF PUBLIC DISCLOSURE: AN INTRODUCTORY ANALYSIS WITH APPLICATION TO INTERNATIONAL... more 7 THE REGULATION OF PUBLIC DISCLOSURE: AN INTRODUCTORY ANALYSIS WITH APPLICATION TO INTERNATIONAL ACCOUNTING STANDARDS Marco Trombetta* INTRODUCTION For the six-month period ending 30 June 1993, Daimler-Benz AG registered as net income a ...
Business Economics Working Papers, Feb 1, 2005
The purpose of this paper is to test empirically the relationship between two important concepts:... more The purpose of this paper is to test empirically the relationship between two important concepts: disclosure and liquidity. Using a sample of Spanish quoted firms between 1994 and 2000 we show that the estimation of the relationship between disclosure and liquidity depends crucially on two factors: a) the multidimensionality of the concept of liquidity; b) the use of an econometric methodology that deals properly with the features of the sample used. However the use of the Amihud (2002) illiquidity measure provides evidence in favour of a positive relationship between disclosure and liquidity.
La necesidad de financiarse en unos mercados de capitales cada vez más sofisticados y complejos o... more La necesidad de financiarse en unos mercados de capitales cada vez más sofisticados y complejos obliga las empresas a facilitar una cantidad de información superior a la que implica el mero cumplimiento de las obligaciones legales en materia de información contable. En este trabajo, en primer lugar, se analizan los fundamentos teóricos del análisis de la decisión de revelar de
SSRN Electronic Journal, 2000
The present work analyzes in a dynamic setting the consequences of using di¤erent accounting regi... more The present work analyzes in a dynamic setting the consequences of using di¤erent accounting regimes-Historic Cost (HC) vs. Fair Value (FV)-for the optimal choice of a …nancial portfolio, when the ownera generic Financial Institution-is interested in consumption (dividends) for two periods, and two types of assets are available in the economy: one risky and one risk-free. Comparing with the theoretical optimal portfolio decisions (First Best), we …nd that both regimes lead to ine¢ ciencies, but FV is ex-ante worse than HC in terms of consumption smoothing and the welfare loss is higher for the companies concerned with long-term business than for those with short-term horizons. Similarly, the ex-ante consumption level for the non-terminal period is worse than the First Best value for both accounting regimes, with FV consumption less than the HC one. When the risky asset is illiquid and/or costs associated with transacting it are relevant to be taken into account, the ex-ante consumption smoothing superiority of the HC regime to the FV one is not always true but depends on the risky asset patterns (expected return and variance) and the transaction costs amount.
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Papers by Marco Trombetta