EARNINGS BENCHMARKS EN EL SECTOR HOTELERO: DECISIONES BASADAS EN VARIABLES FINANCIERAS Y REALES

Abstract

This paper focuses on earnings benchmarks using a sample of Spanish hotel firms. In particular, we examine two earnings benchmarks: loss avoidance and earnings decreases avoidance. First, we use frequency histograms to detect a discontinuity around zero. Second, we use discretionary accruals and other variables to analyze the existence of a different behaviour between firms just miss the benchmark and firms just beat the benchmark. The results show that managers of Spanish hotel firms avoid reporting losses. It is also detected that firms just beat the benchmark present different profile in fundamental variables in relation to firms