Prediction of Earnings Management by Use of Multilayer Perceptron Neural Networks with Two Hidden Layers in Various Industries
Journal Title: UNKNOWN - Year 2017, Vol 5, Issue 1
Abstract
Over the last few years, increase in the number of financial crisis cases has attracted the attention of a great number of investors and creditors to the prediction of these cases by using the data available from financial statements of the corporations in order to prevent losses which are caused by them. Many of the studies about the earning management only focus on identifying the factors which affect the earnings management and relation between earnings management and these factors and not on using these factors in order to predict the earnings management. On the other hand, in the present study, 12 influential factors, which are introduced by former studies, are used to evaluate the predicting ability of the neural networks for prediction of earnings management and its different levels. Multilayer perceptron neural network with 2 hidden layers is used for prediction. Moreover, the required data is obtained from the financial statements of the listed companies of Tehran Stock Exchange (TSE). The results show that the applied neural network method has an acceptable ability for the prediction of earnings management and its different levels in all different studies industries.
Authors and Affiliations
Siavash Mahmoudi, Saeid Mahmoudi, Ali Mahmoudi
Keywords
Related Articles
- EP ID EP323869
- DOI -
- Views 286
- Downloads 0
Dynamic capabilities in manufacturing: The main role of manufacturing capability, knowledge resources and environmental turbulence to improve enterprise
The aim of this study is to identify and analyze of influence manufacturing capability and knowledge resources on dynamic capability also implication toward enterprise performance. Environmental turbulences are existed a...
The Multiple Perception of Innovation: The Case of Micro and Small Enterprises in the Region of Eastern Macedonia and Thrace
This paper explores how innovation is perceived, on the one hand, by the scientific literature and, on the other, by the everyday practice of small and micro enterprises operating in the less developed socioeconomic syst...
The Role of Finance in the Development of Technology-based SMEs: Evidence from New Zealand
Purpose- In this paper we discuss an exploratory study that involved face to face, qualitative inter-views with 20 technology-based small firms (TBSFs) and seven qualitative interviews with key informants and funders. Th...
Selecting Various Industrial Competitors Affect The Risk Level of Viet Nam Manufacturing Material Industry During and After The Global Crisis 2007-2009
Using a one factor model, this paperwork estimates the impacts of the size of firms’ competitors in the manufacturing material industry on the market risk level, measured by equity and asset beta, of 99 listed companies...
Prediction of Earnings Management by Use of Multilayer Perceptron Neural Networks with Two Hidden Layers in Various Industries
Over the last few years, increase in the number of financial crisis cases has attracted the attention of a great number of investors and creditors to the prediction of these cases by using the data available from financi...