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Audit Selection in the European Football Industry under Union of European Football Associations Financial Fair Play

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  • Panagiotis Dimitropoulos

    (Department of Sport Management, University of Peloponnese, Valioti and Plataion, Sparta P.C. 23100, Greece.)

Abstract

The scope of this study is to examine the characteristics of football clubs that choose a high quality auditor and whether this audit selection process was different before and after the implementation of Union of European Football Associations (UEFA's) financial fair play regulation. The study employs a sample of 109 European football clubs for a 7-year period, 2008-2014 (3 years before and 4 years after regulatory intervention), to investigate the impact of this regulatory intervention upon the decision of clubs to hire a big-4 audit firm. The study demonstrates that after FFP implementation, profitability and cash flows became highly significant factors urging clubs to select a big-4 audit firm in order to signal to the market and the regulators that they are able to achieve the regulatory requirements. UEFA should take into consideration that, the imposition of regulatory monitoring tied to accounting data may lead to adverse behavior on behalf of the clubs, thus reducing the effectiveness of the new regulation.

Suggested Citation

  • Panagiotis Dimitropoulos, 2016. "Audit Selection in the European Football Industry under Union of European Football Associations Financial Fair Play," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 901-906.
    • Handle: RePEc:eco:journ1:2016-03-10
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    References listed on IDEAS

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    Cited by:

    1. Alberto Manzari & Riccardo Savio & Marika Marandola, 2024. "The Impact of Corporate Governance on Financial Performance in Professional Sports Clubs: The Case of Italian Serie A," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(1), pages 173-173, February.
    2. Stefan Szymanski, 2017. "Entry into exit: insolvency in English professional football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(4), pages 419-444, September.
    3. Rudemarlyn Urdaneta & Juan C. Guevara-Pérez & Fernando Llena-Macarulla & José M. Moneva, 2021. "Transparency and Accountability in Sports: Measuring the Social and Financial Performance of Spanish Professional Football," Sustainability, MDPI, vol. 13(15), pages 1-16, August.
    4. Havran, Zsolt & András, Krisztina, 2022. "A puha költségvetési korlát szindrómája a hivatásos labdarúgásban. Kitekintés a nemzetközi és a magyarországi sajátosságokra [The soft-budget constraint in professional football syndrome. A view of," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 230-254.
    5. Mercedes Mareque & Angel Barajas & Francisco Lopez-Corrales, 2018. "The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football," IJFS, MDPI, vol. 6(4), pages 1-20, November.

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    More about this item

    Keywords

    Audit Quality; Audit Selection; European Football Clubs; Financial Fair Play;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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