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
Pages :
10
From page :
39
To page :
48
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
Serial Year :
2021
Record number :
2700388
Link To Document :
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