The Effect of Financial and Eurozone Crisis on Accounting Quality of the Hospitality Sector

Abstract

This study examined the evolution of accounting quality in the Mauritian hospitality industry from 1999–2014 using accruals quality as a proxy for accounting quality. This study also determined whether the financial and Eurozone crisis affected accounting quality of the Mauritian hospitality firms. It has been observed that the accounting quality of the hospitality industry in Mauritius was very poor during the crisis period of 2009–2011. Hospitality firms in Mauritius might have used income-decreasing accruals during the crisis period and engaged in “big bath” practices; however, the poor accounting quality in the hospitality industry might have been due to real poor economic performance rather than big bath practices during the crisis period.

本研究使用应计质量作为会计质量指标来研究 1999-2014 年间毛里求斯酒店业会计质量的演变情况。这项研究还确定了金融和欧元区危机是否影响到了毛里求斯酒店管理公司的会计质量。据观察，在 2009-2011 年危机期间，毛里求斯酒店业的会计质量非常糟糕。毛里求斯的酒店公司可能在危机期间使用了收入减少应计项并采用了 “大浴室” 做法；然而，酒店业会计质量差的根本原因可能是经济表现糟糕，而非危机期间的 “大浴室” 做法。

Keywords:

• Accounting quality
• financial crisis
• hospitality industry
• Mauritius