Financial sustainability and earnings management in the Spanish Sports Federations: A multi-theoretical approach

sus ainabili y A icle Financial Sus ainabili y and Ea nings Managemen in he Spanish Spo s Fede a ions: A Mul i-Theo e ical App oach Juan Ca los Gue a a * , Emilio Ma ín and Ma ía JoséA cas   Ci a ion: Gue a a, J.C.; Ma ín, E.; A cas, M.J. Financial Sus ainabili y and Ea nings Managemen in he Spanish Spo s Fede a ions: A Mul i-Theo e ical App oach. Sus ainabili y 2021,13, 2099. h ps://doi.o g/10.3390/su13042099 Academic Edi o : Nicolas Scelles Recei ed: 9 Janua y 2021 Accep ed: 12 Feb ua y 2021 Published: 16 Feb ua y 2021 Publishe ’s No e: MDPI s ays neu al wi h ega d o ju isdic ional claims in published maps and ins i u ional a il- ia ions. Copy igh : © 2021 by he au ho s. Licensee MDPI, Basel, Swi ze land. This a icle is an open access a icle dis ibu ed unde he e ms and condi ions o he C ea i e Commons A ibu ion (CC BY) license (h ps:// c ea i ecommons.o g/licenses/by/ 4.0/). Facul y o Economics and Business, Uni e si y o Za agoza, 50005 Za agoza, Spain; ema in@uniza .es (E.M.); a cas@uniza .es (M.J.A.) *Co espondence: jgue a a@uniza .es; Tel.: +34-620-574-171 Abs ac : The objec i e o his s udy is o analyze, om a mul i- heo e ical amewo k, whe he he manage s o he Spanish Na ional Spo s Fede a ions (NSFs) apply ea nings managemen using accoun ing acc uals as a measu e o manage ial disc e ion; secondly, whe he hese p ac ices a e associa ed wi h bo h he le el o dependence on ex e nal esou ces, and he economic and inancial con ol mechanisms exe cised by he Supe io Spo s Council (Consejo Supe io de Depo es, CSD) o he g an ing o public subsidies. The s udy p o ides e idence ha long- e m deb le els and he size o spo s ede a ions a e de e minan s o ea nings managemen , wi h a mo e accen ua ed ela ionship in he case o Olympic and Pa alympic spo s ede a ions. Keywo ds: ea nings managemen ; accoun abili y; spo s ede a ions; nonp o i en i ies; inan- cial sus ainabili y 1. In oduc ion In Spain, bank up cy p oceedings, deb s o public ins i u ions and a lack o ans- pa ency ha e p ojec ed a bad image o he spo s sec o , a loss o epu a ion and an unde s andable suspicion on he pa o public opinion abou p o essionalism in he man- agemen o his ype o en i y [ 1 ]. This conce n is pa icula ly in ense o hose spo s o ganiza ions ha ecei e signi ican amoun s o public subsidies o und hei ac i i y. In he cu en con ex o economic c isis and inancial aus e i y, i is pa icula ly imely o ques ion, i s ly, whe he i is wo hwhile dedica ing such a la ge amoun o public e- sou ces o his ype o ac i i y and, secondly, whe he hese esou ces a e managed co ec ly. In his sense, he annual accoun s a e he adi ional p ima y ehicle o accoun abili y o e alua e he anspa ency and inancial pe o mance o o ganiza ions. The implemen a ion o he T anspa ency Law 19/2013 [ 2 ] is p esen ed as a egula o y ac ion o he S a e ega d- ing he managemen o esou ces des ined o spo ha seeks o deal wi h his dis us by acili a ing public access o ins i u ional and economic in o ma ion om Non-P o i Spo s O ganiza ions (NPSOs). The Spanish spo s sys em is a icula ed wi hin a public s uc u e whose go e ning body is he Sup eme Council o Spo s (Consejo Supe io de Depo es, CSD) and a p i a e s uc u e whose go e ning body a e he Spanish Olympic Commi ee (Comi éOlímpico Español, COE) and Spanish Pa alympic Commi ee (Comi éPa alímpico Español, CPE) [ 3 ]. Spo s ede a ions a e p i a e nonp o i en i ies and ac as collabo a i e agen s wi h public adminis a ions [4]. Spain has de eloped a mixed model in which spo s ede a ions ecei e unds in he o m o uncondi ional g an s om he CSD, and e enues om p i a e sou ces (licenses, sponso s and in e na ional o ganiza ions). To es e al. [ 5 ], and Ma in e al. show a g ea dispa i y be ween NSFs in e ms o unding. Thus, public unding p o ides mo e han 90% o esou ces in some ede a ions such as weigh li ing and boxing, while in o he s i does no each 20% (baske ball and Tennis). Public esou ces ha e adi ionally cons i u ed he main sou ce o unding o non-p o essional spo -speci ic g an s. The Olympic Spo s Sus ainabili y 2021,13, 2099. h ps://doi.o g/10.3390/su13042099 h ps://www.mdpi.com/jou nal/sus ainabili y Sus ainabili y 2021,13, 2099 2 o 16 Associa ion (Asociación de Depo es Olímpicos, ADO) and Pa alympic Spo s Associa ion (Asociación de Depo es Pa alímpicos, ADOP) P og ams o Plans we e p omo ed wi h he pu pose o assigning addi ional unds o high-le el a hle es in ede a ions ha ha e mo e di icul y in a ac ing p i a e inancing. Addi ionally, in Spain high-le el spo s a e conside ed a ma e o S a e in e es [ 4 ]. Due o his, he de elopmen o high-le el and high-pe o mance spo s esides wi h he NSFs [ 6 ], o which hey ecei e public esou ces on which hey depend o a g ea ex en , and which hey mus manage e icien ly o ob ain compe i i e esul s [ 5 ]. In his sense, sus ainabili y equi es a iple bo om line app oach, whe e imp o emen s a e pu sued in he social, en i onmen al and economic dimensions o pe o mance [ 7 ], and NSFs a e o ganiza ions wi h social and en i onmen al goals and a g owing need o manage hei esou ces e icien ly. A ecen CSD epo highligh s he delica e inancial si ua ion o he Spanish spo ede a ions [ 8 ], no ing ha o 2012 only ou o he 66 NSFs had a posi i e wo king capi al o economic esul , and only six had posi i e equi y, which places he o he s in a si ua ion o echnical bank up cy. This si ua ion led he CSD o implemen measu es om 2013 o hose NSFs ha ha e been acing a delica e economic si ua ion, o cing hem o d aw up a Viabili y Plan. Mo e han hal o he NSFs we e subjec o hese plans, which include s ic pa ame e s o cleaning up hei inancial si ua ion, he non-compliance wi h which would lead o a penal y in he amoun o subsidy g an ed by he CSD. These p essu es may p omo e he adop ion by some NSF manage s o accoun ing p ac ices aimed a showing a inancial ep esen a ion o hese en i ies in line wi h he objec i es imposed by he CSD. Ea nings managemen (EM) occu s when manage s use hei judgmen in inancial epo ing and in s uc u ing ansac ions o al e inancial epo s o ei he mislead some s akeholde s abou he unde lying economic pe o mance o he company, o o in luence con ac ual ou comes ha depend on epo ed accoun ing igu es [9]. Since a single heo y canno explain he se e al esponsibili ies wi hin a spo s o - ganiza ion [ 10 ], he heo ies ou lined in his s udy o e a mul i- heo e ical app oach o analyze o wha ex en Spanish spo s ede a ions apply EM p ac ices, using accoun ing acc uals as a measu e o manage ial disc e ion, and secondly, i his is associa ed bo h wi h he le el o dependence on ex e nal esou ces and wi h he economic and inancial con ol mechanisms exe cised by he CSD o he awa ding o public subsidies. Fu he mo e, he s udy will y o iden i y i he e is a di e en pa e n o beha iou be ween he Olympic Fede a ions (OFs) and hose ha a e no (Non-Olympic Fede a ions, NOFs). This will lead us o assess accoun abili y in Spanish ede a ed spo s and con i m he possibili y ha manage s modi y hei inancial s a emen s when hey a e moni o ed on he basis o accoun ing da a [9]. The emainde o his pape is s uc u ed as ollows: a e he in oduc ion, a second sec ion includes he ela ed li e a u e and a s a emen o he s udy’s hypo heses. Sec ion h ee de elops he empi ical analysis; he ou h sec ion p esen s he esul s, which a e discussed in sec ion i e. Finally, he conclusions a e s a ed in sec ion six. 2. P e ious Li e a u e In he spo s ield, he li e a u e on ea nings managemen is sca ce and mos ly ocused on he oo ball indus y. Some au ho s poin ou he impo ance o con as ing he esul s ob ained in p o essional spo wi h o he sec o s ha sha e he same idiosync asies [ 11 ] since gene aliza ion abou hese indings emains an open empi ical ques ion [ 12 ]. The main con ibu ion o his wo k is o ocus on ede a ed spo s, since in non-p o i spo s o ganiza ions one would expec EM p ac ices o di e en om hose obse ed in p o- essional spo s en i ies, because inpu and ou pu (o means and ends) a e e e sed in non-p o i and o -p o i en i ies (i.e., non-p o i s use inancial esou ces as inpu s whe eas his ep esen s he co e ou pu o o -p o i ) [13,14]. Sus ainabili y 2021,13, 2099 3 o 16 NPSOs gi e p io i y o he ul ilmen o hei spo ing objec i es o e ob aining economic bene i s, and in his way sa is y he in e es s o he go e nmen al o ganiza ions ha inance hem, and o whom success in high-le el spo is a de e mining c i e ion when alloca ing esou ces [ 15 ]. This managemen model ocused on spo ing pe o mance has made he sca ci y o esou ces a ea u e associa ed wi h he “non-p o i ” na u e o his ype o en i y [ 16 , 17 ]. In pa icula , specialized li e a u e has epo ed he exis ence o pe sis en de ici s in NSFs [15] as well as in he spo s clubs ha cons i u e hem [18]. Faced wi h his si ua ion, he Spo Go e ning Bodies o di e en coun ies ha e p omo ed con ol mechanisms based on an adequa e accoun abili y o p e en ine icien- cies in he managemen o public unds by he NPSOs. Some examples a e he SFAF, Spo Canada’s Spo Funding and Accoun abili y F amewo k [ 19 ], he B i ish Olympic Associa ion (BOA) Financial Times S ock Exchange pa ne ship scheme [ 20 ], he p og ams o he Gene al Sec e a ia o Spo s (GSS) in G eece [ 21 ] and he CSD Viabili y Plans in Spain [22]. 2.1. Mul i-Theo e ical F amewo k Al hough he e is a a ie y o heo ies abou go e nance, p e ious esea ch sugges s ha i is a mis ake o assume ha a single heo y applies o any en i y, since each heo y is ocused on speci ic unc ions wi hin he o ganiza ion [ 10 ]. This s udy s a es ha , o analyze go e nance wi hin an o ganiza ion, a leas h ee heo ies mus be applied: agency heo y, esou ce dependency heo y, and ins i u ional heo y [23]. A a gene al le el, he main heo y a ound which he s udy e ol es is classical agency heo y. The s udy aises a classic agency p oblem in which he p incipal (Go e nmen bodies) es ablishes measu es o moni o he agen ’s economic pe o mance, bu he agen (NSF manage s) may y o in oduce ea ning managemen p ac ices o appea o mee he p incipal’s equi emen s. Howe e , once he agency p oblem has been iden i ied, in o de o deepen he ela ionships be ween Go e nmen bodies and NSF manage s and, in pa icula , explain he di e en beha io s o NSF manage s, i is con enien o e e o o he complemen a y heo ies. When con ex ualizing spo s ede a ions in his mul i- heo e ical amewo k, we can obse e ha al hough he “non-p o i ” na u e o his ype o en i y makes hem ope a e unde di e en pa adigms, o e en con a y o he “u ili y pa adigm” which is o ien ed o he sea ch o economic bene i , mo e and mo e impo ance is a ibu ed o he assessmen o hei inancial sus ainabili y as a c i e ion o he alloca ion o esou ces by public pa ne s [ 20 , 24 ]. In his con ex , one o he main conce ns o NSFs is he poli ical cos s de i ed om he economic egula ion o he sec o . The S a e, h ough legal p o isions, has he powe o ca y ou edis ibu ions o weal h among he economic agen s o socie y h ough he es ablishmen o a es, subsidies, axes, e c. [ 25 ]. The e o e, he se o exis ing no ms a a gi en momen is he esul ing balance be ween wo opposing o ces. Acco ding o Regula ion Theo y [ 26 ], he mos isible o ganiza ions end o be mo e egula ed and accoun ing in o ma ion plays an impo an ole in his egula o y p ocess as a moni o ing ool. The g ea e he ax and egula o y aspec s, he g ea e he managemen incen i es o manipula e he esul downwa d, while he en i ies a isk o no ul illing hei deb con ac s will ha e he incen i e o inc ease he bene i and a oid he nega i e consequences o no complying wi h he e ms o he ag eemen [27]. Explaining he egula o y p ocess h ough he poli ical model ep esen s he essen ial poin o induc i e neo-posi i ism, wi h which economic heo y has made i possible o de elop a posi i e accoun ing heo y, assuming ha he in e es o managemen is no necessa ily cong uen wi h ha o he sha eholde s. This allows us o unde s and why he specialized li e a u e highligh s, ia he Agency Theo y [ 25 ], he impo ance o he sepa a ion be ween he manage s o spo s ede a ions and hose who g an hem esou ces om go e nmen en i ies, as an app op ia e heo e ical amewo k o unde s and he managemen o NPSOs [ 23 ]. I would be expec ed ha NPSO manage s will choose Sus ainabili y 2021,13, 2099 4 o 16 accoun ing policies and measu emen bases mo e aligned o hei in e es s a he han o a ue and ai iew o he en i y [28]. The dependence on public subsidies o ede a ed spo [ 5 , 29 ], and he inancial de ici s o he sec o [ 18 ] ha e con ibu ed o he consolida ion o e ime o a managemen model cha ac e ized by coe ci e p essu e om go e nmen s h ough he inancing o NPSOs, signi ican in coun ies such as Canada [ 30 ], he Uni ed Kingdom [ 31 ], Aus alia and New Zealand [ 32 ], Spain [ 29 ], Ge many [ 33 ] and mo e ecen ly Tu key [ 34 ] and G eece [ 15 ], bu less signi ican in No way and Belgium [ 35 , 36 ]. In his sense, he in luence o he en i onmen will depend on each speci ic na ional spo s sys em. Fo all hese s udies, he Resou ce Dependency Theo y (RDT) o e s an app op ia e heo e ical pla o m wi h which o unde s and o ganiza ions’ beha io ope a ing in en i onmen s wi h shi ing sou ces o unds. Acco ding o his, an en i y’s su i al depends p ima ily on i s abili y o secu e and main ain esou ces and manage associa ed dependencies [37]. Addi ionally, success in high-le el spo s as a de e mining c i e ion when alloca ing esou ces highligh s he impo ance a ibu ed by go e nmen s o compe i i e esul s [ 15 ]. This could explain why some s udies show a highe ans e o esou ces o he Olympic ede a ions compa ed o o he ede a ions [ 38 ]. This ac has gene a ed a cul u e acco ding o which he inancial dimension does no ep esen a p io i y and is subo dina e o he spo ing in e es s o he o ganiza ion [39]. The e o e, he impo ance ha cu en spo s de elopmen sys ems a ibu e o eli e spo o e mass spo [ 15 ], and he esponsibili y o he NSFs on he de elopmen o eli e spo [ 5 ], jus i ies he g owing li e a u e on he pe o mance o eli e spo wi h public und- ing and go e nmen pa icipa ion (e.g., [ 40 , 41 ]), as well as on he nega i e epe cussions o a go e nmen de-in es men in spo [ 15 ]. This is because, o NPSOs ha depend hea ily on s a e unding, esis ance o adop ing new egula ion, legisla ion and o he o ms o change can lead o educed in es men in spo and a loss o aluable s a e subsidies [ 23 ]. All hese pa icula i ies ha e led he specialized li e a u e o de ine NSFs’ pe o mance in e ms o RDT as: “ he abili y o acqui e and p ocess human, inancial and physical esou ces o achie e he goals o he o ganiza ion” [13]. Gi en his eali y, i is logical ha speci ic pa e ns o o ganiza ional beha io a e eplica ed in ede a ed spo s in di e en coun ies and in he NSFs o he same coun y. In- s i u ional heo y de ines his ype o o ganiza ional beha io as ins i u ional isomo phism by a guing ha o ganiza ions ope a ing wi hin an en i onmen wi h simila equi emen s imposed by and expec a ions ela ed o unding a e expec ed o adop analogous manage- ial ac ions and go e nance amewo ks [42]. This adop ion o homogeneous beha io s unde he p ocess called isomo phism p omo es he s abili y and su i al o o ganiza ions, p o iding hem wi h g ea e powe and ins i u ional legi imacy, by adop ing p ac ices o ien ed o complying wi h he ules designed by ex e nal o ces, i.e., coe ci e isomo phism, o o imi a e o he o ganiza ions in he sec o , i.e., mime ic isomo phism [ 42 ]. Table 1p o ides a axonomy o some he mos ep esen a i e p io s udies. Thus, his pape p o ides one o he ew quali a i e s udies ha exis in he li e a u e on he managemen o non-p o i spo s en i ies, based on he analysis o he accoun ing in o ma ion disclosed by he ede a ions. The a ionale is o iden i y whe he , despi e no pu suing an economic esul , he manage s o NSFs a e conce ned abou he in o ma ion disclosed in hei inancial s a emen s. Fu he mo e, despi e being an empi ical s udy, i is amed om a mul i- heo e ical pe spec i e, while mos o he o he s udies a e based on a single heo y. Sus ainabili y 2021,13, 2099 5 o 16 Table 1. Taxonomy o p io s udies. Au ho (s) Sample F amewo k Design Edwa ds e al. [30]78 Albe a p o incial spo o ganisa ions (PSOs) in Canada IT Quali a i e Nichols e al. [31] UK spo o ganisa ions VT Quali a i e Shilbu y, D.; and Fe kins, L. [32]8 Aus alia and New Zealand spo o ganisa ions IOR Quali a i e E u an-Ogu , E.; Sahin, M [34]8 membe s o spo s ede a ions and membe s om he Tu kish Minis y o You h and Spo Quali a i e Skille, E. [35]8 spo clubs in he No wegian Spo s Ci y P og am (SCP) IT Quali a i e Vos el al. [36]Spo s clubs belonging o 57 Flande s municipali ies IT, RDT Quan i a i e Giannoulakis el al. [15]10 G eece spo ede a ions and a ep esen a i e om he Sec e a ia o Spo RDT Quali a i e This s udy 58 Spanish spo ede a ions RDT, IT, AT Quan i a i e RDT: Resou ce Dependency Theo y, IT: Ins i u ional Theo y, AT: AgencyTheo y, IOR:In e o ganiza ional Rela ions Theo y, VT: Volun ee ing heo y. 2.2. Fo mula ion o Hypo heses Nex , we p opose he i e hypo heses o be es ed. The i s e e s o he possibili y ha he dependence on public esou ces in he inancing o NSFs is a ac o ha encou ages he in oduc ion o accoun ing p ac ices aimed a a i icially inc easing he esul . Hypo hesis 1 (H1) .The le el o dependence on public unds o NSFs is posi i ely associa ed wi h accoun ing p ac ices ha a i icially inc ease he esul . Mos o he li e a u e on he subjec shows ha spo s o ganiza ions a e cha ac e ized by ha ing sca ce inancial esou ces, e en less han o he ypes o non-p o i o ganiza- ions [ 43 ], and in many cases a s ong dependence on public con ibu ions [ 5 ]. Faced wi h his si ua ion, a dec ease in public subsidies may gene a e se e e inancial p oblems in spo s o ganiza ions such as in he case o G eece, especially a e he educ ion o public subsidies a e he Olympic Games in A hens in 2004 [15]. The impac o he educ ion o public subsidies on non-p o i spo s o ganiza ions has been analyzed in di e en coun ies, o example in Canada by Hall e al. [ 44 ], in Ge many by Lange [ 45 ] and in Aus alia, G ea B i ain, Finland and Poland h ough he s udy by Be e and Slack [ 46 ]. In his ega d, in Spain, CSD g an s o NSFs expe ienced a s eep yea -on-yea decline o 24.85% in 2012 and 29.94% in 2013 [ 8 ], and consequen ly his phenomenon is wo h analyzing. This inancial dependence on public subsidies gi es go e nmen spo s adminis- a ions a ce ain capaci y o implemen hei spo s policies based on hei hie a chical posi ion [ 47 ]. Willem and Schee de [ 48 ] analyze, in a s udy ha compa es ede a ed spo in ele en Eu opean coun ies and wo non-Eu opean coun ies, how he go e nmen can egula e he NSFs om a combina ion o coe cion, subsidies and collabo a ion, applied acco ding o di e en p io i ies. These, in he majo i y o coun ies, a e o ien ed o he de elopmen o capaci ies in he NSFs o gene a e hei own inancial esou ces. Addi ionally, Hoye e al., [ 49 ] claim ha spo has become he objec o inc easing s a e egula o y ac i i y, which in he ligh o Regula ion Theo y highligh s he ole o accoun ing in o ma ion o unde s and causal ela ionships [ 27 ]. F om his pe spec i e, i is assumed ha public au ho i ies moni o he managemen o spo s o ganiza ions [ 50 ] which could gi e ise o he manipula ion hei esul s upwa ds in o de o con ey a be e image o inancial managemen and a oid comp omising o ganiza ional con ol [37]. The second and hi d hypo heses analyze whe he inc eased egula ion and public con ol p omo es he in oduc ion o c ea i e accoun ing p ac ices in spo s o ganiza ions. Sus ainabili y 2021,13, 2099 6 o 16 A s udy is equi ed in he case o Spanish NSFs, gi en ha he CSD equi es he p epa a ion o a Viabili y Plan o hose en i ies ha p esen nega i e ne wo h o wo king capi al. Hypo hesis 2 (H2). The Equi y o NSFs is indi ec ly associa ed wi h he le el o EM. Hypo hesis 3 (H3). The NSFs Wo king Capi al is indi ec ly associa ed wi h he le el o EM. Bo h hypo heses a e based on he ac ha inc eased s a e egula o y ac i i y and he economic p essu es gene a ed by dependence on ex e nal esou ces [ 37 ] p omo e isomo phisms o he ins i u ional ype [ 42 ]. In he case o non-p o i o ganiza ions, his ma e ializes in he adap a ion o managemen echniques om he p i a e sec o , wi h consequen agency p oblems [ 25 ] ha , amed by he heo y o egula ion [ 27 ], could lead o he inco po a ion o EM p ac ices. In Spain, NSFs wi h nega i e ne wo h o wo king capi al mus unde go a Viabili y Plan, he non-compliance wi h which would esul in a penal y in he amoun s alloca ed in he CSD g an s du ing he yea s o alidi y o he same. These measu es ha e esul ed in imp o emen s in he inancial si ua ion o NSFs [ 22 ], bu hei e ec on accoun ing quali y emains o be de e mined. The ou h hypo hesis will add ess he possible ela ionship be ween he indeb edness o o ganiza ions and he applica ion o p o i managemen accoun ing echniques. Hypo hesis 4 (H4). The le el o indeb edness o NSFs is posi i ely associa ed wi h he le el o EM. The le el o indeb edness, unde s ood as he sum o sho - e m liabili y plus long- e m liabili y [ 22 ], is ano he o he igu es obse ed by he CSD, which al hough no pa o he c i e ia o adop ing a plan iabili y, is a de e mining ac o o he inancial heal h o NSFs. Gi en ha he beha iou o sho - e m deb has been analyzed h ough he Wo king Capi al Fund, i should also be obse ed whe he he managemen o p o i bea s any ela ionship o he long- e m deb s uc u e. Fo his pu pose, we ha e conside ed he p opo ions o long- e m liabili ies o o al asse s, which allows compa isons be ween en i ies o di e en sizes. In he case o Spanish NSFs, i is obse ed ha , as o 2013, he loans g an ed by he CSD ha e been educed conside ably, since hey became linked o he implemen a ion o inancial imp o emen plans [8]. The las hypo hesis analyzes he ela ionship be ween he size o he o ganiza ion and he applica ion o accoun ing echniques ela ing o o -p o i managemen . Hypo hesis 5 (H5). The size o NSFs is indi ec ly associa ed wi h he le el o EM. Acco ding o O li zky [ 51 ], i m size is posi i ely ela ed o pe o mance and business iabili y, since i can lead o economies o scale in ope a ions and g ea e con ol o e ex e nal s akeholde s and esou ces, since he po en ial o egula o y sc u iny inc eases as companies ge bigge and mo e p o i able [52,53]. Fo hese easons, we hope o be able o con i m in ede a ed spo he same nega i e ela ionship be ween size and he endency o manipula e he esul p e iously obse ed in he business sec o [ 52 ], and in p o essional spo h ough he eams o he op p o essional Eu opean oo ball leagues [11,12]. 3. Ma e ials and Me hods 3.1. Sample and Da a The las Olympic cycle (2013–2016) was analyzed, he beginning o which coincides wi h he en y in o o ce o he CSD Viabili y Plans and he implemen a ion o T ans- pa ency Law 19/2013 o NSFs. Thus, he ini ial sample conside ed he o al numbe o na ional NSFs (66), disca ding hose NSFs ha did no p o ide inancial da a o he men ioned pe iods. Sus ainabili y 2021,13, 2099 7 o 16 The inal sample consis ed o 52 NSFs o he yea 2013, and 58 NSFs o he yea s 2014, 2015 and 2016, o aling 226 obse a ions. The accoun ing da a has been cap u ed manually om he anspa ency po als con ained in he web pages o he Spanish NSFs. The s udy uses he in o ma ion included in he indi idual annual accoun s and hei co esponding audi epo s. Complemen a y da a ha e been ob ained om he CSD’s “o he s a is ics” sec ion o he yea s 2013 o 2016 [ 54 ], and he DEPORTEDa a da abase o he Minis y o Educa ion, Cul u e and Spo s [ 55 ]. I should be no ed ha , be o e 2013, he yea in which he T anspa ency Law 19/2013 was p omulga ed, no ede a ion had disclosed inancial epo s on i s websi e. This ac has ep esen ed an ad ance conce ning o he s udies [ 15 , 34 , 38 ], since in Spain, hanks o he a o able e ec o T anspa ency Law 19/2013, we ha e he da a o he ealiza ion o his s udy. Howe e , a limi a ion o i s scope has been he lack o p e ious da a ha would allow assessmen o he beha iou o NSFs be o e he implemen a ion o T anspa ency Law 19/2013 and he CSD Viabili y Plans. 3.2. Es ima ion o Disc e ional Acc uals Many an eceden s in he li e a u e e idence a de e io a ion in accoun ing quali y, wi h egula o y in e en ions ha assess he inancial posi ion and pe o mance o companies based on he epo ed accoun ing in o ma ion [ 56 ]. In he spo s ield, some s udies ha e used EM as a p oxy o accoun ing quali y [11,12]. The mos used commonly me hodology o de ec and measu e EM is he es ima ion o disc e ional acc uals (DA). Acc uals a e he accoun ing adjus men s be ween cash lows and income and depend on manage ial es ima es and assump ions; hus, hey a e subjec o manage ial disc e ion and manipula ion. Disc e ional acc uals (DA) a e de ined as ha pa o income o expenses ha do no in ol e cash lows. Indi ec ly, hey a e calcula ed h ough a balance shee app oach o by he di e ence be ween he esul and he ope a ing cash low (CFO). I we assume ha he la e a e no suscep ible o manipula ion, he way o al e he esul is by acc ual adjus men s (TACC). In his sense, TACC, h ough he es ima ion o s anda d o non- disc e iona y acc uals (NDA), p o ide us wi h a poin o e e ence om which o conside he abno mal o disc e iona y acc ual (DA) as p oxies o manage ial disc e ion, educed o he ollowing base exp ession: TACC = NDA + DA (1) whe e: TACC = To al acc uals. NDA = Non-disc e iona y acc uals. DA = Disc e iona y acc uals. The line o esea ch on ea nings managemen begins wi h he wo k o Jones [ 57 ], who a gues o measu ing disc e ion h ough he s udy o TACC, di e en ia ing be ween he disc e iona y and non-disc e iona y pa s. To do his, a linea ela ionship is es ablished be ween TACC, changes in sales and p ope y, and plan and equipmen ; hence, he non-disc e iona y pa is ha which is gi en by changes in sales igu es and ixed asse s. Disc e iona y Acc uals as a Measu e o Ea ning Managemen To measu e he le el o accoun ing manipula ion, we ely on DA. TACCs a e calcula ed indi ec ly h ough a balance shee app oach ha assumes ha he adjus men s o a pe iod a e ob ained by sub ac ing he change in cu en liabili ies om he change in cu en asse s ha a e no cash, o ha gi en pe iod. They can be exp essed acco ding o he ollowing app oach [58]: TACCi = (∆CAi −∆Cashi )−(∆CLi −∆STDEBTi )−DEPi (2) whe e: Sus ainabili y 2021,13, 2099 8 o 16 ∆CAi = he change in cu en asse s o NSF i in pe iod ; ∆CLi = he change in cu en liabili ies o NSF i in pe iod ; ∆Cashi = he change in cash and cash equi alen s o NSF i du ing pe iod ; ∆ STDEBT i = he cu en ma u i ies o long- e m deb and o he sho - e m deb included in cu en liabili ies du ing pe iod ; and DEPi = dep ecia ion and amo iza ion expense o NSF i du ing pe iod . All a iables a e de la ed by lagged o al asse s (TA −1 ) o con ol o scale di e ences. To di e en ia e be ween he disc e iona y and nondisc e iona y pa o TACC, we ha e chosen o use he Jones model [ 57 ], acco ding o which he expec ed adjus men s a e calcula ed as a unc ion o he a ia ion in g oss income and p ope y, plan and equipmen (PPE), which is con olled h ough dep ecia ion and amo iza ion expense adjus men s. All a iables in he acc uals expec a ions model a e scaled by p e ious yea asse s o educe he e oscedas ici y. The app oach o he model is as ollows: TACCi /TAi -1 =α1 (1/TAi -1) + α2(∆REVi /TAi -1) + α3(PPEi /TAi -1) + εi (3) whe e: TACCi = To al acc uals in yea o NSF i. ∆REVi = Re enues in yea less e enues in yea −1 o NSF i. PPEi = G oss p ope y, plan and equipmen in yea o NSF i. TAi -1 = To al asse s in yea −1 o NSF i. The Jones model [ 57 ] has been he basis o mul iple subsequen p oposals including hose models ha equi e ROA ( e u n on ac i e), as in he model o Ko ha i e al. [ 59 ], because p o i abili y does no ep esen a co e objec i e o non-p o i en i ies. Models ha equi e a cash low s a emen , such as he Kasznik [ 60 ] model, a e also disca ded due o he lack o a ailabili y o such in o ma ion, since, in Spain mos NSFs, due o hei size, do no ha e an obliga ion o p esen a cash low s a emen when a balance shee , s a emen o changes in equi y and an abb e ia ed epo can be o mula ed [61]. 3.3. Condi ioning ac o s o Ea ning Managemen In o de o es ou esea ch hypo heses, we inco po a e disc e iona y adjus men s (DA) as a dependen a iable in he ollowing model (Gene alized Leas Squa es, GLS): DAi =α0+α1RDi +α2Ei +α3WCi +α4LTLi +α5SIZEi +εi (4) whe e DA i a e he disc e iona y acc uals cap u ed h ough he e o e m o he model (3) as a p oxy a iable o ea ning managemen . To es he i s hypo hesis H1, he RD i a iable cap u es public unds’ dependence measu ed by public esou ces di ided by o al e enues. Fo his, he public unds ecei ed by he NSFs a e calcula ed h ough he sum o he subsidies o he CSD and addi ional channels such as he ADO and ADOP p og ams. I is conside ed ha a g owing dependence on ex e nal esou ces ha comp omises he au onomy o he NSFs [ 37 ] could be an incen i e o manipula ion, especially o hose NSFs ha p esen inancial de iciencies, and o which public subsidies ep esen a de e mining means o he ul ilmen o objec i es [ 43 ]. The e o e, a posi i e coe icien is expec ed o his a iable. To es hypo heses H2 and H3, he a iables E i and WC i a e dummies ha cap u e he signs o Equi y and Wo king Capi al espec i ely, aking he o m (0) i he alue is nega i e, o (1) i i is posi i e. I is conside ed ha he NSFs will seek o epo posi i e balances in bo h cases, since wi h one o hese wo igu es, o wi h bo h simul aneously, nega i e, he ede a ion mus unde go a Viabili y Plan [ 22 ]. We assume ha his ac en ails an incen i e o manipula ion, o which a nega i e coe icien is expec ed o bo h a iables. The LTL i a iable wi h which he p opo ion o Long-Te m Deb is ep esen ed as a unc ion o To al Asse s allows us o con as ou ou h hypo hesis H4, acco ding o which p o i managemen will be posi i ely associa ed wi h a highe p opo ion o long- e m deb . Sus ainabili y 2021,13, 2099 9 o 16 To con as ou i h and inal hypo hesis H5, Model (4) includes he size (SIZE i ) o he NSFs as a a iable which has been shown o be an essen ial de e minan o ea nings managemen in p e ious esea ch in he spo s ield [ 11 , 12 ]. We used he na u al loga i hm o end-o -yea o al asse s (LnTA i ), as a measu e o he NSF’s size, wi h la ge NSFs expec ed o seek less isibili y while diminishing hei p o i s, as he e ec o egula o y sc u iny inc eases as he companies ge la ge [52,53]. The s udy also conside s ha NSFs, as bene icia ies o he ADO and ADOP p og ams, ha e he addi ional need o sa is y he expec a ions o he axpaye s paying o each p og am, which could ep esen mo e signi ican incen i es o manipula e he accoun ing igu es conce ning o he NSFs ha do no ha e access o hese bene i s as a consequence o complying wi h he Olympic and Pa alympic cycles. This ac implies he need o assess he di e en incen i es o he manipula ion o he esul s be ween Olympic ede a ions (summe and win e ) o Pa alympic (OF), and hose ha do no pa icipa e in any o hese mul ispo e en s (NOF). Finally, model (4) is pe o med sepa a ely in o de o obse e possible di e ences in beha iou be ween OF and NOF. Fo all cases, he e was no e idence o mul icollinea i y in he a iables used in he eg ession model. 4. Resul s Ou i s objec i e is o know i he NSFs manipula e he esul s o he analyzed exe - cises based on he in o ma ion disclosed as a esul o he implemen a ion o T anspa ency Law 19/2013. Hence, we ely on disc e iona y acc ual, whose calcula ion is based, as explained abo e, om he es ima ion o equa ion (3). An o dina y leas squa es eg ession has been applied o each pe iod, and in his way he DA can be ob ained h ough c oss- sec ional es ima es. Table 2p esen s he desc ip i e s a is ics o he esiduals es ima ed by OLS o equa ion (3) o each pe iod. Table 2. Desc ip i e s a is ics o disc e iona y acc uals (2013–2016). Yea n Mean Median SD Minimum Maximum 2013 52 0.0302 0.0166 0.2825 −1.1903 0.5773 2014 58 0.0170 −0.0215 0.4331 −1.9321 1.0626 2015 58 −0.0521 0.0306 0.3151 −1.0813 0.7039 2016 58 0.0459 0.0741 0.3224 −0.8736 0.6031 When analyzing disc e iona y acc ual, a p edominance o upwa d adjus men s is obse ed, excep o he median o 2014, he yea in which T anspa ency Law 19/2013 came in o o ce. This ac sugges s he a emp by NSFs o p esen posi i e esul s in o de o a oid he sanc ions o he CSD. 4.1. Mul i a ia e Analysis The desc ip i e s a is ics o he se ies (Table 3) show p edominan ly posi i e dis- c e iona y acc uals. Addi ionally, public unds ep esen 41.04% o he esou ces o all NSFs. Rega ding he inancial pa ame e s o he CSD, 62.39% o he NSFs ha e a Posi i e Equi y (NE), and 53.54% ha e a posi i e Wo king Capi al (WC), which con i ms he high pe cen age o NSFs wi h NE o wi h nega i e WC. Subsequen ly, he panel da a GLS me hodology wi h andom e ec s is applied ac- co ding o he esul o he Haussman es : Chi-squa e = 8.90 (p- alue= 0.1132), which is also consis en wi h he da a s uc u e o he sample (n > ). A panel has been used ha inco po a es 226 obse a ions om he NSFs ha p esen ed da a o all he yea s o he Olympic cycle analyzed. The esul s a e desc ibed in Table 4: Sus ainabili y 2021,13, 2099 16 o 16 46. Be e , T.; Slack, T. A amewo k o he analysis o s a egic app oaches employed by non-p o i spo o ganiza ions in seeking co po a e sponso ship. Spo Manag. Re . 2001,4, 21–45. 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