Creative Accounting in Greek Football Clubs

Abstract

Football Clubs tent to manipulate their profits in order to obtain a license to participate in Championships, organized under the supervision of UEFA. This article examines, whether Football Clubs that compete in the Greek Super League and in European Competitions use earnings management techniques to manipulate their profits. In order to do so, Jones’ (1991) modified econometric model was used to estimate the accruals that determine the level of earnings management, for the period 2013–15. The statistical analysis, which performed with the use of STATA statistical package v.13, show that Greek Football Clubs which compete in European Competitions are more effective in manipulating their profits while Football Clubs which compete in Greek Super League and have difficulties in obtaining a license do not appeal to manipulate their profits.