Title of article :
Explaining the Beneish model and providing a comprehensive model of fraudulent nancial reporting(FFR)
Author/Authors :
Shakouri, Mohammad Mahdi Islamic Azad University - Kermanshah, Iran , Taherabadi, AliAsghar Islamic Azad University - kangavar,Iran , Ghanbari, Mehrdad Islamic Azad University - Kermanshah, Iran , Jamshidinavid, Babak Islamic Azad University - Kermanshah, Iran
Abstract :
In this study, the aim is to provide a comprehensive model for the prediction, prevention and detection
of nancial reporting fraud using the modied benchmarking model.
To achieve the research goal, the necessary data were collected for 161 companies listed on the
Tehran Stock Exchange during a 10-year period (2009-2018). The results of estimating the research
model have been examined by the binomial logit method. The results of testing the hypotheses of
this study indicate that Beneish model is successful in separating companies involved in fraudulent
nancial reporting and healthy companies, based on McFadden's detection coeficient, with 73%
condence, and among the independent variables, day's sales in receivable index (DSRI), gross margin
index (GMI), asset quality index (AQI), sales growth index (SGI), depreciation index (DEPI) and
total accrual to total assets index (TATAI), have a direct and signicant effect on fraudulent nancial
reporting, but sales, general, and administrative expenses index (SGAI) and leverage index (LEVI)
have had a signicant inverse effect on fraudulent nancial reporting (FFR).
Keywords :
Beneish Model , Fraud , M-Score Model
Journal title :
International Journal of Nonlinear Analysis and Applications