Author:
Fenyves Veronika,Pisula Tomasz,Tarnoczi Tibor
Abstract
The study examined the manipulation level of Hungarian corporate financial statements using Beneish’s M-score model with eight variables between 2017 and 2021. The research also investigated whether the financial statement manipulations depend on the type of sector, company size and age, and region. The research sample was comprised of 32,024 financial statements each year. Statistical tests were used to compare the M-score values of several groups. The proportion of companies with possibly manipulated financial statements varied between 46.43% and 51.67% in the five years. It can be concluded that the manipulation of Hungarian companies’ reports is very high. The analysis showed that the ratios of unlikely manipulated (UM) and likely manipulated (LM) reports were improved at size category 1-4, and size category five significantly improved. The comparison by regions revealed that the UM/LM indicator is lower in more developed regions than in less developed ones. The results draw the attention of government decision-makers to pay more attention to checking financial statements. In addition, it shows to the companies’ stakeholders that the reliability of the financial statements must also be considered during their decision preparations and risk assessment.
Publisher
Centre of Sociological Research, NGO
Reference43 articles.
1. Anning, A. A. and Adusei, M. (2022). An analysis of financial statement manipulation among listed manufacturing and trading firms in Ghana. Journal of African Business, 23(1), 165–179. https://doi.org/10.1080/15228916.2020.1826856
2. Association of Certified Fraud Examiners (ACFE) (2020). Report to the nations, Global Study on occupational fraud and abuse. Retrieved July 25, 2023, from https://legacy.acfe.com/report-to-the-nations/2020/
3. Belás, J., Bilan, Y., Demjan, V., & Sipko, J. (2015). Entrepreneurship in SME segment: case study from the Czech Republic and Slovakia. Amfiteatru Economic Journal, 17(38), 308-326.
4. Beneish, M.D. (1999). The Detection of Earnings Manipulation. Financial Analyst Journal, 55(5), 24–36. https://doi.org/10.2469/faj.v55.n5.2296
5. Coates, J.C. (2007). The Goals and Promise of the Sarbanes–Oxley Act. Journal of Economic Perspectives, 21(1), 91–116. https://doi.org/10.1257/jep.21.1.91
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献