Detecting Corporate Financial Fraud using Beneish M-Score Model
Journal Title: International Journal of Finance and Managerial Accounting - Year 2017, Vol 2, Issue 8
Abstract
Detecting financial fraud is an important issue and ignoring this issue may cause financial and non-financial losses to individuals and organizations. The aim of this study is to test the ability of Beneish M-Score Model for detecting financial fraud among companies listed on Tehran stock exchange. The research sample consists of 137 companies listed on Tehran Stock Exchange for a period of 11 years (2005-2015). Logistic regression analysis is used to test the research hypothesis at the level of 5% error. The results show that the accuracy of Beneish M-score model for detecting fraudulent financial reporting is 66/03 percent. In general, based on the logistic regression analysis, despite the existence of valid theoretical foundations, it seems that it is not possible to detect financial fraud of companies listed on Tehran stock exchange using Beneish M-score model. In other words, based on financial information of companies listed on Tehran Stock Exchange, Beniesh model is not a suitable model for detecting fraud and we need to develop a new model to detect fraud in financial reports
Authors and Affiliations
Nasrin Lotfi, Arezoo Aghaei Chadegani
Keywords
Related Articles
- EP ID EP535091
- DOI -
- Views 54
- Downloads 0
The Effects of Transparency of Financial Information and Board Composition on Forecast Accuracy of Corporate Earnings
The aim of the present research is to determine the effects of financial information transparency and composition of board of directors on forecast accuracy of corporate earnings in companies. A corporation's key for suc...
A Review of Mutual Investment Funds Performance with a View of Market Timing
Appropriate function of active management in common investment funds function depend on factors such as diversification, identification papers unrealistic pricing, market timing, and so on. Market timing are include chan...
Prediction of Stock Price using Particle Swarm Optimization Algorithm and Box-Jenkins Time Series
The purpose of this research is predicting the stock prices using the Particle Swarm Optimization Algorithm and Box-Jenkins method. In this way, the information of 165 corporations is collected from 2001 to 2016. Then, t...
Investigating the Relationship between Religious Attitude and Perceptual Errors in Stock Exchange Investors
The perceptual error of the investors is one of the issues discussed in behavioral finance. The perceptual error is a wrong sensual or perceptual error. That is, what we see or hear does not match with the reality. Rega...
Pricing Approaches for Investment Companies
The main business of an investment company is to hold and manage securities for investment purposes. In today competitive market Pricing and its methodology are complicated motions. It is very important to define a price...