A Statistical Model of Fraud Risk in Financial Statements. Case for Romania Companies

Sabău, Andrada-Ioana; Mare, Codruța; Safta, Ioana Lavinia

doi:10.3390/risks9060116

Cited by 13 publications

(7 citation statements)

References 23 publications

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“…The description of the M-score model can be found in many literary sources (Özcan, 2018;Sabău et al, 2021). The model correctly identifies potential manipulators for 76% of cases in the first year and 66% in the second year after the profit manipulation.…”

Section: Methodsmentioning

confidence: 99%

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Investigation of accounting manipulation using the Beneish model: Hungarian case

Fenyves,

Pisula,

Tarnoczi

2023

Economics &Amp; Sociology

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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.

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Section: Methodsmentioning

confidence: 99%

“…The processed literature used the variables defined by Beneish in all cases. Even those authors (Svabova et al, 2020;Sabău et al, 2021) used the same variables, trying to create their model using Beneish's variables, and only the model coefficients changed. Some authors used the 8-and 5-variable models together (Durana et al, 2022).…”

Section: Beneish Modelmentioning

confidence: 99%

Investigation of accounting manipulation using the Beneish model: Hungarian case

Fenyves,

Pisula,

Tarnoczi

2023

Economics &Amp; Sociology

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“…Fraud merupakan fenomena yang telah ada sejak zaman dulu (Sabău et al, 2021), bertujuan memberikan keuntungan kepada beberapa pemangku kepentingan dengan mengorbankan kepentingan orang lain (Desai, 2020;Mansour et al, 2020) melalui penyajian fakta yang salah (Mansour et al, 2020) untuk menipu penggunanya (Fitri et al, 2019). Fraud terjadi di berbagai sektor (Sabău et al, 2021) dan berbagai bentuk (Zager et al, 2016), sehingga menjadi masalah serius di seluruh dunia dan negara-negara yang berkembang pesat (Ravisankar et al, 2011).…”

Section: Pendahuluanunclassified

“…Fraud atau manipulasi laporan keuangan terus berkembang dengan menggunakan metode yang beragam dan semakin inovatif (Sabău et al, 2021) melibatkan kolaborasi dengan pihak internal perusahaan atau manajer (Sabău et al, 2021;Uwuigbe et al, 2019) serta akuntan (Sabău et al, 2021). Sehingga menimbulkan dampak pada keyakinan investor (Chena et al, 2019), mengganggu dasar-dasar kredit pasar modal, serta menghambat stabilitas perkembangan pasar modal (Qin & Wang, 2021;Zhou & Kapoor, 2011).…”

Section: Pendahuluanunclassified

Evaluasi Efektivitas Pengukuran Laporan Keuangan: A Systematic Literature Review

Heni,

Payamta

2023

E-Jurnal Akuntansi

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This article explores financial report fraud, factors that cause fraud and formulas for detecting fraud. The method used in this research is Systematic Literature Review (SLR), which involves the analysis of articles published from 2000 to 2023. Based on the data, 26 initial articles were obtained from Scopus in the analysis period, and only 13 articles were analyzed effectively. The findings show that the M-Score and F-Score models are widely used in identifying financial statement fraud. It is known that using the M-Sore, F-Score and Benford's law formulas has its own advantages and disadvantages depending on the sample and country studied. This paper provides insight for academics, practitioners, and policy makers to help detect and prevent fraud as well as develop it to make it easier for investors and auditors to detect fraud that occurs in financial reports. Keywords: Fraud, Fraud Detection, Systematic Literature Review, Financial Statement Fraud

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“…This research is based on the following work in the sphere of financial risk management in entrepreneurship: Bakos and Dumitras , cu (2021), Bouri et al (2021), Dalwai and Salehi (2021), Duygun et al (2020), Elkhal (2019), Lasloom (2021), Locurcio et al (2021), Sabău et al (2021), and Syed and Bawazir (2021).…”

Section: Theoretical Basis Literature Review and Gap Analysismentioning

confidence: 99%

Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Popkova

Sergi

2021

Risks

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The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of this article is to clarify specific aspects of financing factors and financial risk related to social entrepreneurship in developing countries (in comparison with the standard financial risk related to commercial entrepreneurship) in order to analyze the influence of the financing factors of social entrepreneurship on sustainable development, as well as to determine the potential for the development of social entrepreneurship through financial risk management. To achieve this goal, this article uses the methodology of econometrics—dataset modelling of financial risk management in social entrepreneurship to achieve sustainable development in emerging economies. On the basis of the results of this study, firstly, it is substantiated that the financial risks entailed by social entrepreneurship differ from the standard financial risk present in commercial entrepreneurship. Specific factors of the financing of sustainable development in emerging economies are determined and, on the basis of this, financial risks specific to social entrepreneurship in emerging economies are identified as follows: (1) reduced stimulus to use financial resources in long-term investments, which disrupts the stability and decreases inclusion; (2) joint public–private investments and decreased investment in R&D; and (3) expanded investment in the skills required for jobs and “markets of tomorrow”. Secondly, a contradictory influence of financing factors on sustainable development is demonstrated. Thirdly, a large potential for the development of social entrepreneurship by means of financial risk management (maximum reduction) was identified. With the minimization of financial risk, social entrepreneurship would demonstrate substantial progress, with an increase of 99.61% (more than 50%) from 45.18 points to 90.18 points. A novel contribution of this paper to the extant literature consists of the specification of the essence and specifics of social entrepreneurship in emerging economies through the identification of financial risks and the provision of recommendations for their management.

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A Statistical Model of Fraud Risk in Financial Statements. Case for Romania Companies

Cited by 13 publications

References 23 publications

Investigation of accounting manipulation using the Beneish model: Hungarian case

Investigation of accounting manipulation using the Beneish model: Hungarian case

Evaluasi Efektivitas Pengukuran Laporan Keuangan: A Systematic Literature Review

Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

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