Applying Benford’s law to detect earnings management
Marek Sylwestrzak
Abstract:Aim/purpose – This paper analyzes the role of Benford’s law in the detection of earn- ings management in Poland. Previous research that uses Benford’s law does not split the sample into a fraud and a control group; however, this method is used in logistic regres- sion and data mining analysis. Design/methodology/approach – The sample comprises 126 observations of Polish non-financial companies listed on the Warsaw Stock Exchange for the years 2010-2021. The author uses first, second, and first-two digits analy… Show more
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