A Study on Entrepreneurship at the University of Valencia
In the last few decades, there has been growing interest in the so-called third mission of universities, one of which, the question of entrepreneurship, will be highlighted in this paper. Hence, universities have been configured as institutions to proactively motivate there alumnae, and there, students will find an ideal environment in which to familiarize themselves with the skills and expertise that entrepreneurs require. Furthermore, universities provide advisory services as well as technical support, which are essential elements of sowing the seed of business start-ups. This chapter sets out, from a qualitative perspective, the policies, strategies and actions undertaken by the Universi…
Low-cost trends in audit fees and their impact on service quality
Abstract The 2008 financial crisis has transformed the business environment. The number of audited firms has fallen considerably since the crisis, leading to a reduction in the cost of auditing services as a result of fierce competition among auditors. This drop in audit fees is of great concern for audited firms because it may be correlated with a fall in audit service quality. Such a fall in quality ultimately harms the prestige of audited firms and therefore negatively affects their profits. Based on an application of fuzzy-set qualitative comparative analysis (fsQCA), this paper analyzes the quality of audit services following a drop in the fees charged by auditors. The factors analyzed…
Constructing the Audit Risk Assessment by the Audit Team Leader When Planning: Using Fuzzy Theory
The aim of this study is to construct the assessment of the expected audit risk by the audit team leader (ATL) during the planification phase of the audit. The ATL plays an important role within the audit, and even more so regarding small and medium-sized (SME) audit firms. The audit risk assessment is critical as relying more (less) on internal controls implemented by the client leads to performing less (more) substantive audit procedures. This is determined by the ATL based on their professional judgement and previous experience. The use of fuzzy theory has powerful potential into the audit arena, as the audit risk assessment (outcome) is critically related to the auditors’ judgement and …
Opportunities for a Sustainable European Financial System
The financial system has traditionally been considered a catalyst for economic growth. Yet the financial crisis of 2008 has shown that the financial system is also capable of triggering a process leading to profound economic instability. This article explores the opportunities for European banks to achieve financial sustainability. SWOT analysis shows that, despite numerous weaknesses and threats, the financial system has a Vast number of strengths and opportunities.
Validez de la información financiera en los procesos de insolvencia. Un estudio de la pequeña empresa española
ResumenEn este trabajo nos proponemos un doble objetivo. Por un lado planteamos la posibilidad de que la presente crisis haya afectado de forma desigual a la motivación por la que las empresas fracasan, y por otra parte, como segundo objetivo, pretendemos contrastar la validez de ciertos modelos de predicción en un contexto de fuerte variación provocado por la crisis económica actual.Para ello, inicialmente someteremos la información de 2 muestras de datos financieros de pequeñas empresas a diversas pruebas estadísticas que pongan de manifiesto la variación de la información contable en 2 escenarios: uno de inexistencia de crisis y otro ante la situación de crisis financiera actual. Después…
Female audit team leaders and audit effort
Abstract Auditing is a collective process conducted by a professional accounting team with a wide range of skills and experience. Audit work is labor-intensive, and audit team diversity, particularly gender diversity, is considered to have both auditing and economic effects. However, there is scant empirical research on the way that audit engagements are conducted and the role of audit team leaders (ATLs), specifically female ATLs, in the audit effort, because they and other audit team members mainly develop audit strategies in practice during the planification period. A hand-collected private data set was gathered from Spanish small and medium-sized audit firms from 2001 to 2015. After con…
Offshoring in the European Union: a Study of the Evolution of the Tax Burden
One of the most serious effects of offshoring is tax avoidance, which harms the economies of the affected regions. In an attempt to eradicate tax avoidance, the EU seeks to establish tax harmonization across its Member States. Based on data for 2006-2014, this study analyzes the historical evolution and current trends of a convergence or divergence of the tax burden for 15 EU Member States. The effective tax rate was used to assess the tax burden. This study used a novel approach to analyze the tax burden and conducted a cluster analysis to examine changes in the effective tax rates between 2006 and 2014. The results imply that when the economy prospers, effective tax rates tend to converge…
A fuzzy-set qualitative comparative analysis model to predict bank bailouts: a study of the Spanish financial system
This paper examines the restructuring of the Spanish financial system. This study is justified by the massive economic and social impact of this process in Spain. Based on the annual accounts and the annual reports of Spanish credit institutions, a model was created to predict the possibility of bank failure or bailout. The variables were selected following a review of the literature. They included the legal form of the credit institution (savings bank versus bank), leverage, real estate investment, gross operating margin, staff costs and non-performing loans. Two variables that had not previously been used in studies of this type were also included in the model: risk-weighted assets and co…
The Role of e-Tutor Competencies in Postgraduate e-Learning Courses: Spotlight on Emotion Management
The role of e-learning in the existing and challenging educational era is crucial. However, it is necessary to overcome some drawbacks such as feelings of isolation and a lack of emotional contact. In this sense, emotion management is a key driver of student satisfaction in e-learning, which is significantly related to students’ motivation, learning, cognitive strategies, self-regulation, and personality antecedents in the classroom. This article examines an online postgraduate course in financial statements auditing, describing the resources used by the e-tutor to conduct affective tutorials, reduce students’ feelings of isolation, increase student involvement, and achieve success in e-lea…
Corporate income tax accounting in Spain: an empirical study
Since the initial application in Spain of the tax effect accounting method based on the international accounting standards (IAS 12 income tax) in 1990, very few empirical studies have examined whether this method provides significant information for decision making. The paper analyses the fiscal information provided in the financial statements, evaluating the significance of the differences between the tax effect accounting method and the taxes payable method and establishing that this one might be acceptable in small companies.
Beyond Subsidies: A Study of Sustainable Public Subordinated Debt in Spain
Evidence from business shows that small- and medium-sized enterprises (SMEs) are fragile. They suffer from a high mortality rate that primarily owes to difficulties in securing financing as a result of major information asymmetries. Despite these difficulties, SMEs provide the economic backbone of all economically developed countries. Aware of the key role of SMEs in national economic stability and of the financial problems that SMEs face, governments have designed a range of financial and tax measures to protect them. These financial measures include a highly specific form of public financing called subordinated debt. This concept refers to debt with the lowest credit seniority, just befor…
El préstamo participativo, ¿tiene el mismo impacto que el capital riesgo en el crecimiento de la pequeña y mediana empresa?
ResumenEl préstamo participativo y el capital riesgo tienen distinta naturaleza, pues mientras el primero es un recurso ajeno, el capital riesgo es un fondo propio. Sin embargo, los profesionales de ambos sectores no encuentran, desde una perspectiva cualitativa, diferencias entre estos instrumentos.Con el objetivo de sustentar cuantitativamente esta percepción, el presente trabajo aborda el análisis estadístico comparativo del efecto que cada uno de estos recursos tiene en 11 variables representativas del crecimiento empresarial, de modo que podamos determinar las posibles analogías entre el impacto que ejercen el préstamo participativo y el capital riesgo sobre el crecimiento de la pequeñ…
Importance of balance sheet composition in stress test estimates
The stress tests are based on macroeconomic variables for the estimations of the results. However, there are other factors that may influence them. This paper studies the influence of the balance sheet structure in the NPL and the loss caused by the NPL using econometric models. The objective is to research how they affect the aggregates in the balance sheet to the delay in payment and the the provision for impairment, distinguishing these effects according to the economic cycle, so that can be applied to the stress test. The results show that the Balance sheet structure is important in delinquency and losses caused by it, especially in respect of stockholders’ funds, ECB resources and …
The origin of the auditor’s income and audit quality : the Spanish case
Estudios previos señalan la existencia de una relación entre la especialización del auditor y la calidad de la auditoría. A partir de esta idea, cuanto más importante sea la actividad de auditoría en el total del negocio de la firma auditora y mayor especialización exista en dicha actividad, el auditor firmante adoptará una postura más conservadora en la emisión de su informe. Utilizando la materialidad cuantitativa como subrogado de la calidad, se examina el efecto que los honorarios por otros servicios distintos a los de auditoría y el peso de los socios firmantes en la firma tienen sobre la cifra de materialidad. Partiendo de la materialidad real utilizada en cada uno de los encargos com…
Changes in determinants of the interest margin in today’s economy
This study examined the interest margin following the significant drop in its contribution to credit institutions’ total income. Balance sheet variables, income statement and annual report variables, and external variables were studied separately. Variables that had not previously been studied in the literature were considered, and determinants that had already been studied were revisited after the reduction in the interest margin. The diversification of investment in associated companies and investment in fixed and variable income are causes of this decrease in the interest margin. Higher fees and commissions offset this decrease. Greater size and market power have reduced the interest mar…
Differential Effect on the Determinants of the Late Payments According to the Economic Cycle
From 2004 to 2007, the Spanish financial system grew at a very rapid rate. However, from 2008 to 2012 impairment losses amounted equivalent to 25% of Spanish GDP.The objective of this paper is investigate how have affected the main problems that have suffered the Spanish economy on the late payments on Spanish credit institutions. And to check whether the effect of these problems is different on stages of growth with respect to the stages of crisis.The main results, according the test Chow, confirmed that there is a structural break in the model in 2007. Also the increase in unemployment increases the late payments and this increase is greater in the stages of growth compared to the stage…