engBernate-Valbuena M.Gutiérrez-Nieto B.Earnings management indicators as predictors of bankruptcy in Spanish companiesART-2025-146271This study examines whether earnings management indicators, which highlight unjustified variations in accounting items, can predict business bankruptcy. Using data from 179,559 Spanish firms, from 2009 to 2014, both traditional financial ratios and earnings management indicators were analyzed. Significant differences between failed and non-failed firms were observed years before bankruptcy. To ensure robustness, a test sample from a future period validated the findings. Logistic regression revealed that certain earnings management indicators, particularly a synthetic index combining multiple indicators, can predict bankruptcy. Such indexes could enhance bankruptcy prediction models, offering valuable insights for assessing financial health and potential risks in businesses.2025http://zaguan.unizar.es/record/164133http://zaguan.unizar.es/record/164133oai:zaguan.unizar.es:164133Documentos de trabajo. (Universidad de Zaragoza. Facultad de Ciencias Económicas y Empresariales) (2025), [37 pp.]by-nc-sahttps://creativecommons.org/licenses/by-nc-sa/4.0/deed.esinfo:eu-repo/semantics/openAccess