We invite you to attend the upcoming Grudis Global Accounting Research Seminar (Grudis GARS), featuring Professor Juan Manuel García Lara, Universidad Carlos III de Madrid (Spain), who will present his paper “Changes to financial reporting when domestic funding substitutes foreign funding: evidence from international sanctions”. The paper will be discussed by Professor Cláudia Custódio, Imperial College Business School (UK) and the session moderated by Professor Paulo Alves, Católica Porto Business School (Portugal).

In the current polarized geopolitical environment, the use of economic sanctions is on the rise. Understanding their intended and unintended effects is therefore critical. We study whether the sanctions against Russia after the 2014 annexation of Crimea, which triggered a shift from foreign to domestic debt financing, affected financial reporting. In particular, we study conditional conservatism, which is expected to facilitate arm’s length debt financing. We show that sanctioned firms decreased their conditional conservatism, and that the decrease only affected firms without government ties (Non-Strategic Firms) and internationally oriented firms. Our results suggest that sanctions can quickly reverse prior improvements in corporate governance.

Professor Juan Manuel García Lara
Universidad Carlos III de Madrid (Spain) | Google Scholar profile 

Juan Manuel García Lara is a Professor of Accounting at Universidad Carlos III de Madrid, where he has also served as Head of the Department of Business Administration (2017–2023). He holds a PhD in Accounting from the University of Valencia. Before joining Carlos III, Professor García Lara was a Lecturer in Accounting and Finance at Lancaster University and a Marie Curie researcher at the University of Manchester. His research interests encompass financial reporting quality, accounting conservatism, earnings management, and the links between financial accounting, corporate governance, and firm investment policy. Professor García Lara's research has been published in leading journals, including Journal of Accounting and Economics, Review of Accounting Studies, Journal of Corporate Finance, Journal of Business Finance and Accounting, and European Accounting Review. He has served as Joint Editor of Accounting and Business Research since 2016 and is an editorial board member of European Accounting Review and Journal of Business Finance and Accounting. He is a member of the Management Committee of the European Accounting Association.

Source: Adapted from https://www.ieseg.fr/en/faculty-and-research/professor/?id=42640090