How are accounting irregularities examined in Spanish insolvency proceedings? An empirical analysis

In this paper we have conducted an empirical analysis of the relevant accounting irregularities assessed in Spanish bankruptcy proceedings. Based on a sample of 121 judgments in which the Mercantile Courts and the Provincial Courts analysed the accounting situation of bankrupt companies, we have ob...

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Main Authors: Juan Monterrey Mayoral, Aurora-Esther Rabazo Martín
Format: Article
Language:English
Published: Universidad de Murcia 2025-01-01
Series:Revista de Contabilidad: Spanish Accounting Review
Subjects:
Online Access:https://revistas.um.es/rcsar/article/view/577941
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author Juan Monterrey Mayoral
Aurora-Esther Rabazo Martín
author_facet Juan Monterrey Mayoral
Aurora-Esther Rabazo Martín
author_sort Juan Monterrey Mayoral
collection DOAJ
description In this paper we have conducted an empirical analysis of the relevant accounting irregularities assessed in Spanish bankruptcy proceedings. Based on a sample of 121 judgments in which the Mercantile Courts and the Provincial Courts analysed the accounting situation of bankrupt companies, we have obtained evidence that judges and courts take into account both quantitative and qualitative factors of the materiality of the infractions, and that judges specialised in mercantile matters tend to apply stricter levels of materiality than non-specialists. However, neither accounting offences nor the degree of specialisation of the judges seemed to have a significant impact on the sentences imposed. Finally, we did not find that implicitly selected materiality levels in precedent judgments could condition or influence the qualification of accounting irregularities in judicial demarcations.
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series Revista de Contabilidad: Spanish Accounting Review
spelling doaj-art-1142232a02044f57bb768cf3e89dc0c52025-08-20T02:13:53ZengUniversidad de MurciaRevista de Contabilidad: Spanish Accounting Review1138-48911988-46722025-01-0128110.6018/rcsar.577941How are accounting irregularities examined in Spanish insolvency proceedings? An empirical analysisJuan Monterrey Mayoral0https://orcid.org/0000-0002-9405-2885Aurora-Esther Rabazo Martín1https://orcid.org/0000-0002-5159-625XUniversidad de Extremadura, Badajoz-SPAINUniversidad de Extremadura, Badajoz-SPAIN In this paper we have conducted an empirical analysis of the relevant accounting irregularities assessed in Spanish bankruptcy proceedings. Based on a sample of 121 judgments in which the Mercantile Courts and the Provincial Courts analysed the accounting situation of bankrupt companies, we have obtained evidence that judges and courts take into account both quantitative and qualitative factors of the materiality of the infractions, and that judges specialised in mercantile matters tend to apply stricter levels of materiality than non-specialists. However, neither accounting offences nor the degree of specialisation of the judges seemed to have a significant impact on the sentences imposed. Finally, we did not find that implicitly selected materiality levels in precedent judgments could condition or influence the qualification of accounting irregularities in judicial demarcations. https://revistas.um.es/rcsar/article/view/577941Accounting irregularitiesBankruptcy proceduresMateriality
spellingShingle Juan Monterrey Mayoral
Aurora-Esther Rabazo Martín
How are accounting irregularities examined in Spanish insolvency proceedings? An empirical analysis
Revista de Contabilidad: Spanish Accounting Review
Accounting irregularities
Bankruptcy procedures
Materiality
title How are accounting irregularities examined in Spanish insolvency proceedings? An empirical analysis
title_full How are accounting irregularities examined in Spanish insolvency proceedings? An empirical analysis
title_fullStr How are accounting irregularities examined in Spanish insolvency proceedings? An empirical analysis
title_full_unstemmed How are accounting irregularities examined in Spanish insolvency proceedings? An empirical analysis
title_short How are accounting irregularities examined in Spanish insolvency proceedings? An empirical analysis
title_sort how are accounting irregularities examined in spanish insolvency proceedings an empirical analysis
topic Accounting irregularities
Bankruptcy procedures
Materiality
url https://revistas.um.es/rcsar/article/view/577941
work_keys_str_mv AT juanmonterreymayoral howareaccountingirregularitiesexaminedinspanishinsolvencyproceedingsanempiricalanalysis
AT auroraestherrabazomartin howareaccountingirregularitiesexaminedinspanishinsolvencyproceedingsanempiricalanalysis