Abstract
Research background: The motivation behind submitted article is the institutional research of earnings management. The aim is to identify the differences between the usage of creative accounting techniques in the form of Beneish’s M-score under the conditions of Slovak economy. The paper focuses on these differences and specifics and possible reasons behind them. Paper highlights also the impact of globalization on companies and therefore also behind their motives to use earnings management. It also offers several definitions of earnings management and also highlights the importance of the borderline knowledge between earnings management and fraudulent behavior. The Beneish’s model seems to be used by several of major Slovak companies in food segment. The aim was to analyse this sector of Slovak economy, because of its importance to everyday life of people. To assess the motivation behind its usage by these companies. Either it is because they want to transfer their earnings to maternal companies, or there are unexpected local circumstances.
Purpose of the article: To describe specifics in the process of Beneish’s model usage under the conditions of selected segment of Slovak economy and also to highlight motivation behind its usage.
Methods: The paper is built on the statistical methods, financial analysis as well as the methods of formal logic, like comparison, analysis or synthesis and deduction.
Findings & Value added: Comprehensive overview of the earnings management definition, its forms and motives behind its usage and foremost specifics in its usage under the conditions of selected segments of Slovak economy.