To see the other types of publications on this topic, follow the link: Financial manipulation.
Journal articles on the topic 'Financial manipulation'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Financial manipulation.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Kogdenko, V. G., and A. K. Zavalishina. "Studying the specifics of manipulation of financial statements in organizations of the construction sector." Economic Analysis: Theory and Practice 19, no. 9 (September 29, 2020): 1614–45. http://dx.doi.org/10.24891/ea.19.9.1614.
Full textAbstract:
Subject. We identify the signs of manipulating the financial statements in the construction sector organizations. Objectives. We focus on developing the analytical procedures to detect the signs of financial statements manipulation, namely, the so-called window dressing. Methods. The methodological basis rests on general scientific principles and methods of research, like abstraction, generalization of approaches of domestic and foreign authors to the detection of manipulation of reporting, and statistical methods of information processing. Results. We developed a classification of methods for manipulation of unsound improvement of financial statements, assessed the likelihood of misstatement of financial statements, identified the elements of poor quality items, proposed a method to detect the manipulation of reporting, based on the comparison of substandard financial statement items with reliable items and/or non-financial indicators. We tested the methodology on the data of enterprises, operating in the construction sector. Conclusions. The study found that a likely manipulator is, usually, a micro-enterprise or a small company that does not have a credit limit, has significant relative performance of assets and liabilities of low quality, while showing high productivity and high return on assets at the average level of capital/labor ratio, and characterized by low investment and financial activity.
2
Nwoye, Chizoba Mary, Alphonsus Sunday Anichebe, and Ifeanyi Francis Osegbu. "Effect of Audit Quality on Earnings Management in Insurance Companies in Nigeria e." Athens Journal of Business & Economics 7, no. 2 (February 15, 2021): 173–202. http://dx.doi.org/10.30958/ajbe.7-2-4.
Full textAbstract:
The main objective of the study is to determine the effect of audit quality on earnings management in insurance companies in Nigeria with special consideration on accruals and performance measures of earning manipulations using insurance companies in Nigeria. Preliminary analyses were conducted, such as descriptive statistics and correlation matrix. In analyzing the data, the study adopted panel multiple regression to identify the possible effects of audit quality on earnings management of financial institutions in Nigeria We interpreted fixed effect analysis after using Hausman test. The result shows that audit quality had a significant effect on earnings management. We conclude that longer stay of auditors in financial institutions increases accrual and performance manipulation. However, financial institutions audited by the Big 4 auditing firms are associated with less accrual and performance earnings manipulation while financial institutions that have executive and non-executive directors as members of audit committee have greater accrual and performance earnings manipulations. Higher number of financial experts in audit committee increases accrual manipulation while higher number of experts with accounting background in audit committee reduces performance manipulating. Finally, increase in auditors’ fee leads to choices of using accounting methods to manipulate both accrual and performance earnings. Therefore, the study recommends that, financial institutions should have maximum number of years for auditors to stay. They should focus more on increasing the number of experts with accounting background in audit committees. Accounting bodies should regulate auditors’ fee in line with the size of the financial institution. (JEL M42) Keywords: Audit Fees, Audit Committee Independence, Audit Firm Size, Audit Quality, Earnings Management, Financial Literacy of Audit Committee Members, Length of Audit Tenure.
3
Spatt, Chester. "Security Market Manipulation." Annual Review of Financial Economics 6, no. 1 (December 2014): 405–18. http://dx.doi.org/10.1146/annurev-financial-110613-034232.
Full text
4
Zubalj, Marijan, Vesna Buterin, and Denis Buterin. "BITCOIN AS A POSSIBLE MEANS OF FINANCIAL MARKET FRAUD." DIEM: Dubrovnik International Economic Meeting 6, no. 1 (September 2021): 204–16. http://dx.doi.org/10.17818/diem/2021/1.21.
Full textAbstract:
The aim of this paper is to present the manipulation possibilities in the operation of information technology. Many authors have already dealt with cryptocurrencies and their investment potential, with special emphasis on bitcoin. Therefore, the aim of this paper is to identify possible manipulative activities in the segment of information technology about bitcoin as a possible means of fraud in the financial market, especially if it is analysed the trend of its movement and potential financial risk. In this paper, the authors investigate in detail the characteristics of securities by linking them to market manipulations. The authors analyse bitcoin as a relative market and financial unknown, explain its origin and the most significant characteristics, and define the risks in terms of possible market manipulations. Finally, the authors analyse the financial bubble that is created around bitcoin and its impact on the economy. The authors analyse that bitcoin and other cryptocurrencies are still suitable for fraudulent activities in financial markets and emphasize the importance of institutions in reducing potential risks. Keywords: bitcoin, institutions, bubble
5
Aljloud, Saad A. "Comparing the Law Related to Market Manipulation in Islamic Law and US Law." Asian Social Science 16, no. 1 (December 31, 2019): 80. http://dx.doi.org/10.5539/ass.v16n1p80.
Full textAbstract:
The financial markets have been beset by large-scale market manipulations since its beginning. This article focuses on comparing the laws of market manipulation of the US and Islamic law and how Muslim countries get benefits from US regulation of financial markets. This will investigate market manipulation from US law and Islamic perspective. This article will present a comprehensive step review of the Islamic law regarding market manipulation. Also this article begins with a snapshot of financial markets in US law and the meaning of manipulation. Understanding more about the way the jurisprudence was designed to adapt to the existing laws and institutions of the Islamic Shariah will help place some of the unique features in Islamic law of financial markets.
We will discuss the Islamic doctrine ḥisbah (حسبة‎) which means ‘accountability’ or a duty to ‘enjoin good and forbid wrong’ and how it benefits Islamic financial markets. Finally we will discuss whether principles of market manipulation, supplemented in Islamic law, have attained their purpose.
6
Lach, Sylwia. "Selected Methods of Psychological Manipulation in the Marketing of Financial Services." Journal of International Business Research and Marketing 6, no. 1 (2020): 24–29. http://dx.doi.org/10.18775/jibrm.1849-8558.2015.61.3004.
Full textAbstract:
The main purpose of this article is preliminary identification of manipulation techniques and methods used in banks for staff relationship management. The empirical contribution of this article is to discuss the influence of immediate supervisor on the consumer’s consultants in the banking sector. The author has tried to answer the research questions, Are there any manipulation techniques used by bank managers? If, yes, what methods of psychological manipulations are applied by supervisors on to their employees. Data is gathered by using interviews with an experts’ group and by the critical reflection on the professional experiences of the author of the article. The initial results highlight some manipulation techniques used by bank managers on the consumers’ consultant, for example, the reciprocity technique, group technique, the contrast technique, authority technique, word manipulation technique, impression management technique and social manipulation techniques, such as the foot-in-the- mouth and dialogue, the door-in-the-face”, stressful situations, feelings of guilt. It is also worth noting that in opposition to techniques there are examples of psychological counteraction to manipulation, for example, the instinct to restrain aggression and empathy, change assessment into opinion, violation of the principle of reciprocity, self-esteem, personality and manipulation. The author also paid considerable attention to aspects such as rights and needs of the employee in the sales of financial services and his job satisfaction.
7
Khan, Ajaan Rahman, and Mohsina Akter. "An Analysis of Earnings Management: Evidence from Food & Allied Industry of Bangladesh." International Journal of Accounting and Financial Reporting 7, no. 2 (December 14, 2017): 359. http://dx.doi.org/10.5296/ijafr.v7i2.12205.
Full textAbstract:
The objective of the study is to examine the existence of earnings management within listed companies in the food and allied industry of Bangladesh. The renowned Beneish Model has been used to test whether the firms are involved in any sort of earnings manipulation or not. In addition, the tendency of the companies to continuous practice of earnings manipulation has been examined. The study covers a span of 5 years from 2011 to 2015 where the financial figures are tested on the model to find the probability of the companies being a manipulator of earnings. According to Beneish model, companies with higher M-score (manipulation score) are more likely to be a manipulator. The result shows that twelve out of fourteen companies have significantly higher M-score at least for one year during five-year periods. A further study reveals that a major portion of the industry has the tendency of getting into earnings manipulation on a continuous basis. Though the Beneish Model is a probabilistic approach so it is not stoutly conclusive from the test that companies are manipulating earnings or a continuous manipulator within the observation period.
8
Christian, Natalis, Friendty Friendty, Alfredo Crisitiano, Angellyn Lim, and Uci Sufikat Maskat. "PERKEMBANGAN AKUNTANSI SINGAPURA SERTA ANALISIS FINANCIAL SHENANIGANS PADA BLUMONT GROUP LTD." Jurnal Ilmiah Akuntansi dan Bisnis 6, no. 1 (August 3, 2021): 84–95. http://dx.doi.org/10.38043/jiab.v6i1.3069.
Full textAbstract:
The development of accounting is related to manipulating financial performance. Accounting includes organizations, certification profession, and financial reporting standards in that country. Financial shenanigans is an action planned to manipulate the financial performance of a company which consists of seven categories. This article describes a comparison between the development of accounting for Indonesia and Singapore, and an analysis of seven financial shenanigans in manipulating financial performance Blumont Group Ltd, a business service company located in Singapore, where was involved in a case of very high new share price manipulation with two listed Singapore companies, Asiasons Capital Ltd and LionGold Corp Ltd in 2013. The research method explains based on facts in Singapore and the financial statements 2016-2020 of Blumont Group Ltd. The results explain that there isn’t evidence that the Blumont Group Ltd company does shenanigans one, two, four, five, six and seven, but was found to practice shenanigans three. Keyword: The development of accounting, Financial Shenanigan, Singapore, Indonesia, Manipulation.
9
Xu, Lianzan, and Francis Cai. "AN ANALYSIS OF FINANCIAL INFORMATION MANIPULATION." Journal of International Finance Studies 17, no. 2 (December 1, 2017): 51–56. http://dx.doi.org/10.18374/jifs-17-2.5.
Full text
10
Siering, Michael, Benjamin Clapham, Oliver Engel, and Peter Gomber. "A Taxonomy of Financial Market Manipulations: Establishing Trust and Market Integrity in the Financialized Economy through Automated Fraud Detection." Journal of Information Technology 32, no. 3 (September 2017): 251–69. http://dx.doi.org/10.1057/s41265-016-0029-z.
Full textAbstract:
Financial market manipulations represent a major threat to trust and market integrity in capital markets. Manipulations contribute to mispricing, market imperfections and an increase in transaction costs for market participants and in costs of capital for issuers. Manipulations are facilitated by increased transaction velocity, speculative trading and abusive usage of new trading technologies, i.e., they are directly linked to financial sector changes that drive financialization. Research at the intersection of financialization and IS might support regulatory authorities and market operators in improving market surveillance and helping to detect fraudulent activities. However, confusing terminology is prevalent on financial markets with respect to different manipulation techniques and their characteristics, which hampers efficient fraud detection. Furthermore, recognizing manipulations is challenging given the large number of information sources and the vast number of trades occurring not least because of high-frequency traders. Therefore, automated market surveillance tools require a comprehensive taxonomy of financial market manipulations as a basis for appropriate configuration. Based on a cluster analysis of SEC litigation releases, a review of the latest market abuse regulation and academic studies, we develop a taxonomy of manipulations that structures and details existing manipulation techniques and reveals how these techniques differ along several dimensions. In a case study, we show how the taxonomy can be utilized to guide the development of appropriate decision support systems for fraud detection.
11
Hasan, Md Shamimul, Normah Omar, Paul Barnes, and Morrison Handley-Schachler. "A cross-country study on manipulations in financial statements of listed companies." Journal of Financial Crime 24, no. 4 (October 2, 2017): 656–77. http://dx.doi.org/10.1108/jfc-07-2016-0047.
Full textAbstract:
Purpose The purpose of this study is threefold: first, to detect trends in financial statement manipulation; second, to measure the level of manipulation and to measure the variation in manipulation between countries; and, third, to identify widely used techniques in financial statements manipulation. Design/methodology/approach This study uses financial data of listed companies from Asia, namely, Japan, Singapore, Malaysia, Indonesia, Thailand, Hong Kong and China. The study adopts financial ratios, financial forensic tool, dichotomous approach and statistical tools to analyze the data (84,000 observations) over a period of four years from 2010 to 2013. Findings The results show that 34 per cent of sample companies in selected Asian countries are involved in the manipulation of financial statements; the average level of manipulation (overall manipulation index) is 72 per cent; and there is a significant difference between countries at 5 per cent level. The study also identifies four most commonly used techniques, namely: days’ sales in receivable (DSRI), depreciation (DEPI), assets quality (AQI) and total accruals to total assets (TATA). Research limitations/implications Although this study found a significant national difference between countries in terms of practicing manipulation in financial statements, it did not address the issue of why some countries have higher level of manipulation and greater fluctuations in manipulation than others. Further study could be conducted to look for the reasons on these issues. Practical implications Investors and other stakeholders are advised to judge the manipulation in financial statements before fixing up for investment. At least they should examine Sales, Accounts Receivable, Depreciation, Value of Fixed Assets and Accruals data before accepting the financial statement in good faith. Social implications The trend of manipulation in financial statements is increasing day by day and that is why it needs to prevent to protect our society from white collar crime. The cost of white collar crime is much higher and key executives are making money at the expense of investors and other stakeholders. This kind of study creates awareness among stakeholders about the manipulation as well as provides techniques to examine the faithfulness of financial statements. Then, managers will not overstate or understate either revenues or expenses easily, as it can damage the goodwill. Originality/value This is the first study of its kind addressing measurement of manipulation score, overall manipulation index (OMI) and identification of widely used variables of manipulation in financial statements are new contributions towards existing literature of earnings manipulation.
12
Filipović, Ivica, Toni Šušak, and Andrea Lijić. "The Effect of Auditor Rotation on the Relationship between Financial Manipulation and Auditor’s Opinion." Business Systems Research Journal 12, no. 1 (May 1, 2021): 96–108. http://dx.doi.org/10.2478/bsrj-2021-0007.
Full textAbstract:
Abstract Background: Since external auditors possess the expertise necessary for detecting manipulations in financial statements, they should also take into account earnings management that could lead to it. In that context, auditor’s independence, which can be affected by auditor’s rotation, is of utmost importance. Objectives: This paper aims to examine the moderating effect of auditor rotation on the relationship between the extent of financial manipulation and the type of auditor’s opinion for companies listed on the Zagreb Stock Exchange in the Republic of Croatia. Methods/Approach: A panel analysis with logistic regression is conducted to test the research hypothesis. The sample consists of 210 observations during the three years from 2015 to 2017. Results: Results show a significant positive relationship between auditor rotation in a current financial year and auditor’s opinion. Furthermore, there is a negative, but the statistically insignificant moderating effect of auditor rotation in a current financial year on the relationship between financial manipulation and auditor’s opinion, as well as the statistically insignificant moderating effect of auditor rotation frequency over five years on the relationship between financial manipulation and auditor’s opinion. Conclusions: It is not likely that auditors take earnings management into account when generating their opinion on financial statements, and auditor rotation is not proven to be an adequate stimulus in that context.
13
Wiedman, Christine I. "Instructional Case: Detecting Earnings Manipulation." Issues in Accounting Education 14, no. 1 (February 1, 1999): 145–76. http://dx.doi.org/10.2308/iace.1999.14.1.145.
Full textAbstract:
This case focuses on the use of financial statement analysis in the detection of earnings manipulation. Specifically, it draws on advances in the accounting research literature and provides a way of integrating this knowledge into an auditing or master's level accounting/financial statement analysis course. Students are required to assess the probability that a set of financial statements contain fraud by analyzing excerpts from the company's financial and proxy statements, and applying the Beneish (1997) probit model for detecting earnings manipulation. Students are also encouraged to utilize the Compustat database to compare the company's financial data to a peer group of firms in the industry. The appendix provides a discussion of academic research relevant to the analysis, including a description of simple analytical procedures, a listing of important qualitative risk factors to consider in assessing the likelihood of fraud (in part from Statement on Auditing Standards No. 82), and an in-depth description of the Beneish (1997) probit model. A spreadsheet is made accessible via the Internet for easy application of the model to the company in this case and to other companies.
14
Jordanoska, Aleksandra, and Nicholas Lord. "Scripting the mechanics of the benchmark manipulation corporate scandals: The ‘guardian’ paradox." European Journal of Criminology 17, no. 1 (July 12, 2019): 9–30. http://dx.doi.org/10.1177/1477370819850124.
Full textAbstract:
This article implements a crime script analysis to understand the procedural dynamics of corporate benchmark-rigging in the financial services industry. In 2012 several global banks were implicated in the manipulation of various trading benchmarks, portraying the industry as affected by serious, pervasive and ‘organized’ corporate crimes. Yet their dynamics have been relatively little studied by criminologists. To address this gap, we analyse official enforcement documentation, supplemented with data from interviews with key informants in the UK financial markets. We analyse the range of interactions between the relevant actors, their actions and the resources essential to the manipulations, and deconstruct the benchmark manipulations into four scenes (calculated positioning and identification of co-collaborators; recruitment; (ephemeral) manipulation; recompense and solicitation). The analysis reveals that regulatory and organizational systems play a paradoxical role of both ‘capable guardians’ and ‘facilitators of misconduct’; this has implications for criminological theory.
15
Duffie, Darrell, and Jeremy C. Stein. "Reforming LIBOR and Other Financial Market Benchmarks." Journal of Economic Perspectives 29, no. 2 (May 1, 2015): 191–212. http://dx.doi.org/10.1257/jep.29.2.191.
Full textAbstract:
LIBOR is the London Interbank Offered Rate: a measure of the interest rate at which large banks can borrow from one another on an unsecured basis. LIBOR is often used as a benchmark rate— meaning that the interest rates that consumers and businesses pay on trillions of dollars in loans adjust up and down contractually based on movements in LIBOR. Investors also rely on the difference between LIBOR and various risk-free interest rates as a gauge of stress in the banking system. Benchmarks such as LIBOR therefore play a central role in modern financial markets. Thus, news reports in 2008 revealing widespread manipulation of LIBOR threatened the integrity of this benchmark and lowered trust in financial markets. We begin with a discussion of the economic role of benchmarks in reducing market frictions. We explain how manipulation occurs in practice, and illustrate how benchmark definitions and fixing methods can mitigate manipulation. We then turn to an overall policy approach for reducing the susceptibility of LIBOR to manipulation before focusing on the practical problem of how to make an orderly transition to alternative reference rates without raising undue legal risks.
16
Hidayatullah, Alif, and Sulhani Sulhani. "Pengaruh Manipulasi Laporan Keuangan dan Karakteristik Chief Financial Officer terhadap Ketepatwaktuan Pelaporan Keuangan dengan Kualitas Audit Sebagai Variabel Pemoderasi." Jurnal Dinamika Akuntansi dan Bisnis 5, no. 2 (October 10, 2018): 117–36. http://dx.doi.org/10.24815/jdab.v5i2.10872.
Full textAbstract:
This study was conducted with the aim of obtaining empirical evidence of the relationship between financial statement manipulation and CFO’s characteristics to the timeliness of financial reporting by using audit quality as a moderator. The data used in this study is 206 observations derived from the financial statements of companies listed in the Indonesia stock exchange for the period of 2012-2015. This research uses moderation regression method with panel data. The manipulation of financial statements in this study was measured using the Benneish (M-Score) model, the characteristics of CFOs were measured regarding three categories consisting of gender, tenure and educational background, and audit quality was measured using industrial proxies of audit specialization. The results of this study support the first hypothesis that the manipulation of financial statements negatively affects the timeliness of financial statements. Meanwhile CFO’s characteristic has no significant influence on the timeliness of financial reporting and audit quality cannot moderate the influence of financial statement manipulation and CFO’s characteristic, hence it does not support another hypothesis of this study.
17
Drábková, Zita. "Analysis of Possibilities of Detectnig the Manipulation of Financial Statements in Terms of the IFRS and Czech Accounting Standards." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 63, no. 6 (2015): 1859–66. http://dx.doi.org/10.11118/actaun201563061859.
Full textAbstract:
The main objective of financial statements is to give information. The diversity of interests and objectives of individual groups of users and creators of financial statements presents the risk of manipulation of financial statements in the context of true and fair view as defined in the national accounting legislation. The paper is concerned with the different possibilities of detecting the manipulation of financial statements in terms of the Czech Accounting Standards and IFRS. The paper analyzes the selected risk detection models of the manipulation of financial statements using creative accounting methods, off-balance sheet financing methods and accounting frauds in specific case studies of selected accounting unit in terms of Czech accounting standards. Based on the analysis and comparison of the results thereof, the paper presents and evaluates the alternatives of users of financial statements to evaluate the risk of manipulation of financial statements beyond the scope of a fair and true view. The evaluation further includes a comparison of uses of these models with respect to the International Financial Reporting Standards.
18
Fischel, Daniel R., and David J. Ross. "Should the Law Prohibit "Manipulation" in Financial Markets?" Harvard Law Review 105, no. 2 (December 1991): 503. http://dx.doi.org/10.2307/1341697.
Full text
19
Beattie, Vivien, and Michael John Jones. "Information design and manipulation." Information Design Journal 7, no. 3 (January 1, 1994): 211–26. http://dx.doi.org/10.1075/idj.7.3.03bea.
Full textAbstract:
We discuss the results of an investigation into the graphic reporting practices used by 240 leading UK companies in their 1989 corporate annual reports. Our main findings are that 79 per cent of companies used graphs and that 64 per cent of all graphs were bar/ column graphs. Many of these were poorly designed and constructed. There was evidence of biasing in graphic choices, with the use of graphic presentation being contingent upon 'good' rather than 'bad' financial performance. Companies were three times more likely to include graphs in their annual report which exaggerated, rather than understated, favourable time series trends in key performance variables. There was also evidence of the use of certain design and construction techniques intended to create a favourable visual impression. There is a need for more studies of graphic practices in other domains, and for guidelines to raise the standards and fidelity of financial graphs.
20
Alaryan, Laith Abdullah, Ayman Ahmad Abu Haija, and Ali Mahmoud Alrabei. "The Relationship between Fair Value Accounting and Presence of Manipulation in Financial Statements." International Journal of Accounting and Financial Reporting 4, no. 1 (May 30, 2014): 221. http://dx.doi.org/10.5296/ijafr.v4i1.5405.
Full textAbstract:
The application of fair value has started early in Jordan, which was a bone of contention among supporters and opponents. This study came to provide empirical evidence on the relationship between fair value and financial manipulation. The study extracted data from 45 companies’ annual reports during a ten-year period (1997- 2006) five years before and after the application of fair value to examine the relationship among the application of fair value accounting and the presence of manipulation in financial statements. The result indicates that the number of firms that manipulated information in the financial statements had increased after applying fair value accounting. The results have policy implications, one of which is that the Jordanian government should either enact new regulations or modify the current regulations in the face of an increasing number of manipulations by firms after the application of fair value accounting. These regulations are needed to increase both the managements’ and accountants’ responsibility towards the firms and to enhance the business ethics of the organization.
21
Khalid, Waleed, Kashif Ur Rehman, and Muhammad Kashif. "The Impact of Merger and Acquisition Firms on Stock Market Bubble." Global Regional Review IV, no. I (March 30, 2019): 335–42. http://dx.doi.org/10.31703/grr.2019(iv-i).36.
Full textAbstract:
In this research, we have endeavored to ascertain how the Merger & Acquisition firms effect the Pakistani stock market (PSX) during all stages of bubble periods. The regression results of “transaction multiples” and “inverse transaction multiples” show that the trading of the securities of Merger & Acquisition firms has increased in all stages of bubble periods less crash period where they decreased. The regression results have also revealed that Pakistani investors in the stock market carry a “weak financial knowledge & financial risk distress management” & they prefer market manipulation for discounting & therefore, they are adversely hit market manipulations in the stock exchange while trading securities. Resultantly, managerial incentives, as well as cost of capital of Merger & Acquisition firms, stand increased with the help of relevance of accounting, Earnings manipulation & by exercise Investing Activities.
22
Siddiq, Faiz Rahman, and Sofyan Hadinata. "FRAUD DIAMOND DALAM FINANCIAL STATEMENT FRAUDFRAUD DIAMOND DALAM FINANCIAL STATEMENT FRAUD." BISNIS : Jurnal Bisnis dan Manajemen Islam 4, no. 2 (December 9, 2016): 98. http://dx.doi.org/10.21043/bisnis.v4i2.2692.
Full textAbstract:
The financial statements will become more qualified in the<br />presentation if the presentation is based on qualitative<br />elements, among others: easy to understand, reliable,<br />comparable (comparable), and relevant. The financial<br />statements are presented to stakeholders, namely:<br />management, employees, investors (shareholders), creditors,<br />suppliers, customers, and government. Fraudulent financial<br />reporting was a deliberate attempt by the company to deceive<br />and mislead the users of financial statements, especially<br />investors and creditors, to present and manipulate the material<br />value of the financial statements. Manipulation gain profit<br />(earnings manipulation) for the company's desire that the stock<br />remains attractive to investors. Fraud triangle theory expressed<br />by Cressey later developed by Wolfe and Hermanson (2009)<br />with theory. Fraud diamond diamond fraud theory consisted of<br />four fraud risk factors are pressure, opportunity, rationalization<br />and capability. Diamond fraud theory can be used in predicting<br />fraud in proksikan with earnings management.
23
PERSSON, PETRA. "Attention manipulation and information overload." Behavioural Public Policy 2, no. 1 (February 13, 2018): 78–106. http://dx.doi.org/10.1017/bpp.2017.10.
Full textAbstract:
AbstractLimits on consumer attention give firms incentives to manipulate prospective buyers’ allocation of attention. This paper models such attention manipulation and shows that it limits the ability of disclosure regulation to improve consumer welfare. Competitive information supply from firms competing for attention can reduce consumers’ knowledge by causing information overload. A single firm subjected to a disclosure mandate may deliberately induce such information overload to obfuscate financially relevant information or engage in product complexification to bound consumers’ financial literacy. Thus, disclosure rules that would improve welfare for agents without attention limitations can prove ineffective for consumers with limited attention. Obfuscation suggests a role for rules that mandate not only the content, but also the format of disclosure; however, even rules that mandate ‘easy-to-understand’ formats can be ineffective against complexification, which may call for regulation of product design.
24
Yoon, Sun-Joong. "Closing Call Auction Prices as Settlement Prices for Derivatives Contracts and Price Manipulation." Journal of Derivatives and Quantitative Studies 23, no. 3 (August 31, 2015): 439–73. http://dx.doi.org/10.1108/jdqs-03-2015-b0006.
Full textAbstract:
Previous literature emphasizes the importance of a closing call auction system because it can not only improve the price discovery effect, but also mitigate the possibility of price manipulation. However, Korea Exchange, which has adopted a closing call auction system, has still suffered from the price manipulation, most cases of which are likely to be related to the derivatives contracts. Based on this environment, this paper investigates why KRX experiences the closing price manipulations so much, even though it adopted the closing call auction system. Generally, a price manipulation occurs when the legal/administrative penalty is less than the expected economic gain or when a specific market structure increases an incentive to manipulate the price. In this paper, we find that the adoption of a closing call auction price as a settlement price for KOSPI derivatives contracts strengthens the incentive for closing price manipulation, which is supported by Kyle (2007). Kyle (2007) shows that if a closing price is used as a settlement price and investors can execute the ‘market-on-expiration orders’ surely, the derivatives with cash settlement are susceptible to the price manipulation such as squeezing or cornering, equally as the derivatives with physical settlement. As such, KRX is the only financial market that satisfies the above conditions. This paper tries to verify this argument by introducing the Hong Kong Exchange case, the Korean ELS-related manipulation case and the Deutsche Bank case. Therefore, we strongly recommend changing the settlement price of KRX derivatives contracts into an average price, which is similar with the well-developed financial markets.
25
Lomnicka, Eva. "Preventing and Controlling the Manipulation of Financial Markets: Towards a Definition of ‘Market Manipulation’." Journal of Financial Crime 8, no. 4 (February 2001): 297–304. http://dx.doi.org/10.1108/eb025994.
Full text
26
Safta, Ioana-Lavinia, Monica Violeta Achim, and Sorin Nicolae Borlea. "Manipulation of Financial Statements Through the Use of Creative Accounting. Case of Romanian Companies." Studia Universitatis „Vasile Goldis” Arad – Economics Series 30, no. 3 (September 1, 2020): 90–107. http://dx.doi.org/10.2478/sues-2020-0019.
Full textAbstract:
AbstractThe manipulation of the information presented through financial statements could represent a significant red flag for suspected fraud. In our paper, we investigated the extent to which the Romanian companies resort to manipulation of information data presented through the reported annual financial statements. For this purpose, we used a group consisting of 62 non-financial companies listed on the Bucharest Stock Exchange for the analyzed period 2017-2018. The results of our study show that a majority percentage of the Romanian companies (approx. 84%) resort to manipulation of information provided through financial statements. Following the analysis carried out by activity fields, the results show that the companies activating in the fields of tourism, constructions, trade and transport resort to the manipulation of financial statements in the percent of 100%, followed by the companies activating in the field of production (86%) and services (50%). Our results are extremely useful to the users of financial information who must acknowledge the risks that they are exposed to in their decision-making process.
27
Brown, Abigail. "Understanding Pharmaceutical Research Manipulation in the Context of Accounting Manipulation." Journal of Law, Medicine & Ethics 41, no. 3 (2013): 611–19. http://dx.doi.org/10.1111/jlme.12070.
Full textAbstract:
Good decision-making requires reliable information. In medicine, relevant information comes from clinical trials and other forms of scientific research. In business, one source is in corporate annual financial statements. As for-profit, publicly traded companies whose business is discovering, manufacturing, and marketing drugs, pharmaceutical companies sit at the nexus of these two fields. Determining the safety and efficacy of a pharmaceutical product and determining the profitability of a complex enterprise are similarly difficult tasks: each is fraught with deeply ambiguous information that requires sophisticated judgment to interpret reasonably.
28
Melnichuk, M. V., and I. I. Klimova. "Means of Verbal Manipulation in Advertising Discourse of Financial Companies." Humanities and Social Sciences. Bulletin of the Financial University 9, no. 6 (February 10, 2020): 111–15. http://dx.doi.org/10.26794/2226-7867-2019-9-6-111-115.
Full textAbstract:
The article analyses the verbal component of the advertising discourse of financial companies. The overview of existing linguistic research in the field of advertising discourse allows the authors to conclude that typologies of verbal means are based on postulates of cognitive linguistic (modelling semantic domains), stylistics (rhetoric devices and figures of speech), pragmatics (the theory of speech acts). However, the verbal component of advertising discourse is not well researched yet. We undertake an attempt to systemize verbal means of manipulation in advertising discourse based on the dichotomy “speech strategy/tactics” and corresponding language resources. Therefore, singled out a corpus of texts from financial companies’ sites and analysed how proposition in an utterance correlates with the verbal means. Further, we formulated statistical conclusions about the percentage of different manipulative tactics used on the site of a financial company. Finally, the authors concluded that despite the development of verbal expression in advertising, imperative mood, citation and ‘bombastic lexis’ for positioning a company as a leader on the market are still more frequent than other more linguistically creative verbal means.
29
Ahmad Haruna Abubakar, Abubakar Usman, Peter U Anuforo, and Baba Yagana Alhaji. "AUDIT COMMITTEE ATTRIBUTES AND REAL EARNINGS MANAGEMENT IN NIGERIA." Asian People Journal (APJ) 4, no. 1 (April 30, 2021): 84–92. http://dx.doi.org/10.37231/apj.2021.4.1.254.
Full textAbstract:
This study extends existing research on the real earnings management by examining the impacts of audit committee attributes on real earnings management in Nigeria. The analyses involve a sample of 72 non-financial firms with 360 firm-year observations for a five-year period (2014-2018). Data was obtained from the annual reports of these companies as well as from Thompson Reuters and Bloomberg databases. The Panel Corrected Standard Error was used to test the model studied. The finding shows that audit committee size prevent managers’ activities in earnings manipulations. Also, the result establish that the audit committee independence presence on the audit committee control managers’ opportunistic behaviour while audit committee financial expertise were monitors in curtailing earnings manipulation practice. The findings shall give insight to financial analysts, investors, and regulators on the importance of AC in enhancing the quality of the financial report, also show the role of the audit committee characteristics to deter real earnings manipulations.
Keywords: audit committee, size, independence, expertise, earnings management
30
Cikrikci, Mustafa, and Mustafa Ozyesil. "Financial manipulation in seasoned equity offerings: evidence from Turkey." Pressacademia 5, no. 3 (September 30, 2018): 268–87. http://dx.doi.org/10.17261/pressacademia.2018.936.
Full text
31
Svabova, Lucia, Katarina Kramarova, Jan Chutka, and Lenka Strakova. "Detecting earnings manipulation and fraudulent financial reporting in Slovakia." Oeconomia Copernicana 11, no. 3 (September 17, 2020): 485–508. http://dx.doi.org/10.24136/oc.2020.020.
Full textAbstract:
Research background: Misleading financial reporting has a negative impact on all stakeholders since financial records are the primary source of information on financial stability, economic activity, and financial health of any company. The handling of them is primarily the responsibility of managers or owners and reasons for doing so may differ. Their common denominator is the artificial creation of information asymmetry to get different types of benefits. It is, therefore, logical that the issue of detecting opportunistic earnings management comes to the fore.
Purpose of the article: The purpose of the study is to create a discriminant model of the detection of earnings manipulators in the conditions of the Slovak economy.
Methods: We used the discriminant analysis to create a model to identify fraudulent companies, based on the real data on companies that were convicted from misleading financial reporting in connection with tax fraud in the years 2009–2018. The model is inspired by the Beneish model, which is one of the most applied fraud detection methods at all.
Findings & Value added: In order to achieve more accurate detection results, we extended the original model by taking into account the values of indicators from three consecutive years, i.e. by taking into account the development of the potential tendency of companies to be involved in opportunistic earnings management. Our model correctly identified 86.4% of fraudulent companies and overall reaches 84.1% classification ability. Both models were applied on empirical data on 1,900 Slovak companies from the years 2016–2018, while their overlap was 32.7% for fraudulent companies and 38.4% for non-fraud companies. This is a very useful result, as the application of both models rein-forces the results obtained and the identical classification of the company into fraudulent indicates that the manipulation of earnings occurs with a high probability.
32
Tang, Fengchun, Christopher Kevin Eller, and Benson Wier. "Reporting Frequency and Presentation Format: Detecting Real Activities Manipulation." Journal of Information Systems 30, no. 3 (September 1, 2015): 63–77. http://dx.doi.org/10.2308/isys-51284.
Full textAbstract:
ABSTRACT As management increasingly manages earnings through real activities manipulation (RAM), RAM detection has become an important issue. This study investigates the role of reporting frequency and presentation format in detecting sales-related RAM. Based on the results of an online experiment with 77 experienced financial analysts, we find that more frequent financial reporting significantly improves sales-related RAM detection when financial analysts are aided with graphical displays. The results of our study suggest that more frequent financial reporting has the potential to improve RAM detection by disclosing trends that are suggestive of RAM. Moreover, results indicate that graphical representation reduces the cognitive effort required to process a larger number of data points generated by more frequent reporting and thus provides a better cognitive fit than tabular representation. As a result, the combination of more frequent reporting and graphical support together may assist financial statement users in detecting certain types of RAM.
33
Lin, Hung-Wen, Kun-Ben Lin, Jing-Bo Huang, and Shu-Heng Chen. "Timely Loss Recognition Helps Nothing." Sustainability 13, no. 14 (July 13, 2021): 7815. http://dx.doi.org/10.3390/su13147815.
Full textAbstract:
This paper digests the relationship between the manipulation of losses and price reversals in the Chinese stock market. Timely loss recognition is involved in detecting the manipulation of losses, while price reversals are investigated by momentum profit. In addition, two-way sorting momentum portfolios are employed to connect manipulating losses with price reversals. Companies with low timely loss recognition aggressively manipulate their losses, and our results indicate that they generate much more significantly negative momentum profits. As a consequence, they cannot build up any immunity against reversal risks and encounter much higher reversal risks than other companies. Such findings still hold after the risk adjustments using asset pricing models come into play and when controlling for the calendar effect. This research indeed suggests that investors should exercise caution when dealing with companies whose financial information is too positive. Such companies may dress up their financial reports, thereby significantly increasing the risks associated with price reversals.
34
Milojičić, Marija, Snežana Knežević, and Aleksandar Grgur. "EARNINGS MANAGEMENT AS A MANIPULATIVE FORM OF FINANCIAL REPORTING." Knowledge International Journal 34, no. 5 (October 4, 2019): 1323–28. http://dx.doi.org/10.35120/kij34051323m.
Full textAbstract:
The financial statements, as the end product of the accounting information system, are a structural account of the financial position and financial success of an entity's business over a period. Earnings or net profit indicates an important position in the financial statements and is considered as a measure of a company’s success. Earnings management comes from the accounting skills that executives and business owners use when making business decisions. The Generally Accepted Accounting Principles set out in International Accounting Standards (hereinafter IAS) and International Financial Reporting Standards (hereinafter referred to as IFRS) generally give the owner or manager the choice between several accounting methods within the various stages of the accounting process. One of these methods is creative accounting, which is often correlated with the manipulation of financial statements. Creativity in accounting is known to be legal and to stay within the legal framework, but it is often the case that, with its creativity, it is beyond its boundaries. The way managers exercise this discretion is very important to the quality and objectivity of financial reporting.The tendency of the owners, and then the managers, to show the performance of the company better than they really are, is certainly not new. The reason that in the world from the beginning of the 2000s to the present day, both by the scientific and professional public and by the regulatory bodies in charge of financial reporting, particular attention is paid to this problem are the major political and economic scandals caused by the inaccurate presentation of financial statements. It is considered that manipulative accounting practices are applied in the preparation of financial statements when the application of accounting principles is made with the intention of achieving the desired objective, such as, for example, generating greater profit regardless of whether the procedures selected are in accordance with international and local prescribed rules.The prevalence of manipulation of financial statements depends on the situation in the environment, the quality of the normative basis of financial reporting, the quality of management and the ability of accountants to comply with professional and ethical standards. The environment implies the general economic situation, the existence or absence of appropriate legislation, including its implementation, as well as the relation to tax liabilities.The result of the original empirical research is presented in this paper. The research was conducted in the form of a case study of a domestic business entity (the Republic of Serbia), whose main activity is trade in sports and fashion products. The financial analysis was performed using the Beneish model, which was derived from the official financial statements of the companies, collected from publicly available databases (Balance Sheet and Income Statement 2016-2018) as the basic information base in order to discover the degree of possible manipulation of their own earning capacity. This model has become particularly popular since the Beneish M-scoring model revealed the manipulation of the financial results of the US company Enron, which went bankrupt in 2001.
35
Akra, Raif M., and Jamil K. Chaya. "Testing the Effectiveness of Altman and Beneish Models in Detecting Financial Fraud and Financial Manipulation: Case Study Kuwaiti Stock." International Journal of Business and Management 15, no. 10 (September 16, 2020): 70. http://dx.doi.org/10.5539/ijbm.v15n10p70.
Full textAbstract:
This study is an adoption of two probabilistic financial analysis methods, Altman and Beneish Models that have proven effective in early detection of possible financial distress and profit manipulation respectively. Motivated by the effectiveness of the models, this paper applies the methodology on the Kuwaiti Stock Market excluding banking and insurance companies. Results demonstrated that Altman has less predictive power in the context of industrial and real estate companies while Beneish has a strong predictive power to uncover possible manipulation in earnings or fraudulent reporting in the tested companies as confirmed with an ex-post review of the companies and news sources. We recommend a recalibration of the Altman model according to industry in addition to recommending that financial analysts and interested parties use both models.
36
Archambault, Jeffrey J., and Marie E. Archambault. "EARNINGS MANAGEMENT AMONG FIRMS DURING THE PRE-SEC ERA: A BENFORD'S LAW ANALYSIS." Accounting Historians Journal 38, no. 2 (December 1, 2011): 145–70. http://dx.doi.org/10.2308/0148-4184.38.2.145.
Full textAbstract:
ABSTRACT This paper examines the existence of financial statement manipulation in the U.S. during a time period when many of the current motivations did not exist. The study looks for types of manipulations that would be motivated by the pre-SEC operating environment. To examine this issue, a sample of U.S. firms from the 1915 Moody's Analyses of Investments is divided into industrial firms, railroads, and utilities. The railroad and utility companies faced rate regulation during this time period, providing incentives to manipulate the financial reports so as to maximize the rate received. Industrial firms were not regulated. These companies wanted to attract investors, motivating manipulations to increase income and net assets. To determine if manipulations are occurring, a Benford's Law analysis is used. This analysis examines the frequency of numbers in certain positions within an amount to determine if the distribution of the numbers is similar to the pattern documented by Benford's Law. Some manipulations consistent with expectations are found.
37
Herman, Sergiusz. "Impact of joint-stock companies’ financial condition on real activities manipulation to manage earnings." Wiadomości Statystyczne. The Polish Statistician 64, no. 10 (October 28, 2019): 36–52. http://dx.doi.org/10.5604/01.3001.0013.7588.
Full textAbstract:
The aim of the paper is both to determine whether joint-stock companies in poor financial condition undertake real activities manipulation to manage earnings, and to investigate the potential relationship between the scope of real activities manipulation and business fields in which these companies are operating. The database of the Notoria Serwis company and panel data models were used for the purpose of the study. In order to measure the scale of real earnings manipulation, the author adopted Roychowdhury’s methodology, focusing on the manipulation of sales, production costs and discretionary expenses. The study examined a sample of non-financial joint-stock companies listed on the Warsaw Stock Exchange in the period 1998–2016, and was based on 1493–1669 obser-vations. The results demonstrated that companies in poor financial condition undertake actions to manage earnings. Managers manipulate sales volumes and reduce levels of discretionary expenses. The intensity of those actions depends on the type of business activity of a given company.
38
Gujarathi, Mahendra R. "Diamond Foods, Inc.: Anatomy and Motivations of Earnings Manipulation." Issues in Accounting Education 30, no. 1 (October 1, 2014): 47–69. http://dx.doi.org/10.2308/iace-50948.
Full textAbstract:
ABSTRACT Diamond Foods is America's largest walnut processor specializing in processing, marketing, and distributing nuts and snack products. This real-world case presents financial reporting issues around the commodities cost shifting strategy used by Diamond's management to falsify earnings. By delaying the recognition of a portion of the cost of walnuts acquired into later accounting periods, Diamond Foods materially underreported the cost of sales and overstated earnings in fiscal 2010 and 2011. The primary learning goal of the case is to help students understand the anatomy and motivations of earnings manipulation. Specifically, students will have the opportunity to (1) apply the FASB's Conceptual Framework to a real-world context, (2) determine the nature of errors and compute their numerical effects on financial statements, (3) understand motivations for earnings management and actions needed for managing earnings of future years, (4) explain the anatomy of financial reporting fraud by reconstructing journal entries, (5) prepare comparative financial statements for retroactive restatements, (6) explain the rationale for clawback provisions in compensation contracts, and (7) understand the difference between the real and accrual-based earnings management.
39
Cocco, Anthony F., and Tommy Moores. "Financial Reporting Differences Under SFAS 125." Journal of Applied Business Research (JABR) 15, no. 3 (August 30, 2011): 59. http://dx.doi.org/10.19030/jabr.v15i3.5672.
Full textAbstract:
<span>SFAS 125 was fully effective after December 31, 1997. The main issues covered by the standard are transfers and servicing of financial assets and recognition of liabilities. This article focuses on the differential financial statement effects and ratio impact of recording transfers as sales versus as secured borrowings. An example illustrates the income and ratio manipulation possibilities afforded by the standard.</span>
40
Nugroho, Sholehudin Adi, and Amrie Firmansyah. "PENGARUH FINANCIAL DISTRESS, REAL EARNINGS MANAGEMENT DAN CORPORATE GOVERNANCE TERHADAP TAX AGGRESSIVENESS." JOURNAL OF APPLIED BUSINESS ADMINISTRATION 1, no. 2 (January 26, 2018): 163–82. http://dx.doi.org/10.30871/jaba.v1i2.616.
Full textAbstract:
This study is aimed to examine the effect of financial distress, real earnings management, and corporate governanceon tax aggressiveness. Using samples from manufacturing companies listed on the Indonesia Stock Exchange in the period 2011 to 2015, the data will be examined with fixed effect approach method. The results of this study indicate that financial distress does not affect on tax aggressiveness. While from real earnings management variables, only through manipulation of sales as which affects positive significantly on tax aggressiveness. On the contrary, manipulation of the production and manipulation of discretionary expenses precisely give the opposite effect. In addition, corporate governance consists of the audit committee and the percentage of institutional ownership can reduce tax aggressiveness, meanwhile the third measure (the percentage of independent commissioners) shows the opposite result..
41
Nugroho, Budi. "Potensi Manipulasi Pendapatan Menggunakan Model Beneish M-Score, Studi Kasus pada Laporan Keuangan PT Garuda Indonesia Tbk., Tahun 2017-2018." JURNAL ONLINE INSAN AKUNTAN 5, no. 1 (June 25, 2020): 73. http://dx.doi.org/10.51211/joia.v5i1.1321.
Full textAbstract:
Abstrak: Penelitian ini menggunakan model Beneish m-score untuk mendeteksi potensi manipulasi pendapatan pada laporan keuangan tahunan PT Garuda Indonesia Tbk periode tahun 2018. Tujuan penelitian adalah untuk mengungkapkan kemungkinan adanya potensi manipulasi pendapatan pada laporan keuangan PT Garuda Indonesia, Tbk, untuk periode tahun buku 2018. Berdasarkan hasil pengolahan data, nilai m-score dari laporan keuangan perusahaan adalah -0,49, yang mana lebih besar dari nilai acuan -2,22, sehingga dapat disimpulkan bahwa berdasarkan model ini, terdapat potensi manipulasi pendapatan pada laporan keuangan PT Garuda Indonesia Tbk., untuk periode tahun buku 2018. Penggunaan model ini untuk mendeteksi adanya potensi manipulasi pendapatan pada laporan keuangan perusahaan sangat berguna bagi pemegang saham,investor, dan kreditur.
Kata Kunci: Beneish m-score, manipulasi, pendapatan, laporan keuangan.
Abstract: The research use Beneish m-score model to detect potential income manipulation on annual financial statement of PT Garuda Indonesia, for the year 2018. The objective of this research was to uncover potential income manipulation on the financial statement. Based on data calculation, the m-score value was -0,49, which higher than reference value -2,22, therefore it can be concluded that there was potential income manipulation in PT Garuda Indonesia, for the year 2018. The application of this model in order to detect potential income manipulation in the company financial statement might be useful for shareholders, investors, and creditors.
Keywords: Beneish m-score, manipulation, income, financial statement.
42
Nugroho, Budi. "Potensi Manipulasi Pendapatan Menggunakan Model Beneish M-Score, Studi Kasus pada Laporan Keuangan PT Garuda Indonesia Tbk., Tahun 2017-2018." JURNAL ONLINE INSAN AKUNTAN 5, no. 1 (June 25, 2020): 73. http://dx.doi.org/10.51211/joia.v5i1.1321.
Full textAbstract:
Abstrak: Penelitian ini menggunakan model Beneish m-score untuk mendeteksi potensi manipulasi pendapatan pada laporan keuangan tahunan PT Garuda Indonesia Tbk periode tahun 2018. Tujuan penelitian adalah untuk mengungkapkan kemungkinan adanya potensi manipulasi pendapatan pada laporan keuangan PT Garuda Indonesia, Tbk, untuk periode tahun buku 2018. Berdasarkan hasil pengolahan data, nilai m-score dari laporan keuangan perusahaan adalah -0,49, yang mana lebih besar dari nilai acuan -2,22, sehingga dapat disimpulkan bahwa berdasarkan model ini, terdapat potensi manipulasi pendapatan pada laporan keuangan PT Garuda Indonesia Tbk., untuk periode tahun buku 2018. Penggunaan model ini untuk mendeteksi adanya potensi manipulasi pendapatan pada laporan keuangan perusahaan sangat berguna bagi pemegang saham,investor, dan kreditur.
Kata Kunci: Beneish m-score, manipulasi, pendapatan, laporan keuangan.
Abstract: The research use Beneish m-score model to detect potential income manipulation on annual financial statement of PT Garuda Indonesia, for the year 2018. The objective of this research was to uncover potential income manipulation on the financial statement. Based on data calculation, the m-score value was -0,49, which higher than reference value -2,22, therefore it can be concluded that there was potential income manipulation in PT Garuda Indonesia, for the year 2018. The application of this model in order to detect potential income manipulation in the company financial statement might be useful for shareholders, investors, and creditors.
Keywords: Beneish m-score, manipulation, income, financial statement.
43
Thompson, Peter A. "Market Manipulation? Applying the Propaganda Model to Financial Media Reporting." Westminster Papers in Communication and Culture 6, no. 2 (October 1, 2009): 73. http://dx.doi.org/10.16997/wpcc.125.
Full text
44
Elnahas, Ahmed M., Pankaj K. Jain, and Thomas H. McInish. "Exploring the manipulation toolkit: the failure of Doral Financial Corporation." Applied Economics 50, no. 2 (April 21, 2017): 157–71. http://dx.doi.org/10.1080/00036846.2017.1319563.
Full text
45
Ward, W. Timothy, and Jeffrey A. Rihn. "Demographic and Financial Implications of Pediatric Emergency Department Fracture Manipulation." Journal of Pediatric Orthopaedics 27, no. 8 (December 2007): 877–81. http://dx.doi.org/10.1097/bpo.0b013e3181558c4d.
Full text
46
Shih, Ching-Hui, Sin-Jin Lin, and Ming-Fu Hsu. "DETECTION OF FINANCIAL INFORMATION MANIPULATION BY AN ENSEMBLE-BASED MECHANISM." Neural Network World 24, no. 5 (2014): 479–99. http://dx.doi.org/10.14311/nnw.2014.24.028.
Full text
47
Braml, Harald. "The manipulation of LIBOR and related interest rates." Studies in Economics and Finance 33, no. 1 (March 7, 2016): 106–25. http://dx.doi.org/10.1108/sef-10-2014-0203.
Full textAbstract:
Purpose – The “London InterBank Offered Rate” (LIBOR) is one of the most important short-term interest rates with trillions of US dollar in financial products tied to it. Due to recent allegations of manipulation of the LIBOR, this paper aims to investigate the integrity of this rate. Design/methodology/approach – The paper analyzes the LIBOR and its rate fixing process using different screens to detect potential manipulative behavior on the macro and micro level. As main frameworks, an interest rate parity approach and the construction of a theoretical LIBOR using Credit Default Swap (CDSs) are applied. A simulation on the potential impact from one through four banks manipulating the LIBOR is performed as well. Findings – The results on the macro level show that the LIBOR deviates heavily from other short-term interest rates from mid-2007 onwards, reaching its peak in September 2008 with the collapse of Lehman Brothers. On the micro level, the individual submissions of the panel banks are investigated, finding inconsistencies for Barclays and HSBC. Furthermore, a simulation on the influence from potential manipulation under the current calculation method reveals substantial effects on the LIBOR fixing. Even one bank trying to manipulate the fixing has a strong influence on the rate setting. Originality/value – This paper contributes to the academic landscape in that it investigates the LIBOR rate setting process and if irregular behavior can be detected, given the screens used. Due to the findings of conspicuous behavior in the fixing during certain periods, the integrity of the rate setting process is more than questionable.
48
Thompson, Joel E. "EARLY BOOKS ON INVESTING AT THE DAWN OF MODERN BUSINESS IN AMERICA." Accounting Historians Journal 35, no. 1 (June 1, 2008): 83–110. http://dx.doi.org/10.2308/0148-4184.35.1.83.
Full textAbstract:
The purpose of this study is to enhance understanding of early investment practices and the role financial and other information played in those practices. The primary method employed is to examine early books on investing published in the U.S. Early authors described stock market operations including manipulations of security prices by the bulls and the bears. Their solution to this manipulation was to educate investors and provide company information, mostly through directories and manuals. This study shows that financial and other information was thought by the authors to be critically important at the time that the securities markets were first called upon to provide capital to the railroad industry, the first modern business in America.
49
Khersiat, Ola Mohammad. "The Role of the Forensic Accountant in the Detection of Tax Fraud in Financial Statements: A Survey Study in the Jordanian Accounting and Auditing Offices and Firms." International Journal of Economics and Finance 10, no. 5 (April 13, 2018): 145. http://dx.doi.org/10.5539/ijef.v10n5p145.
Full textAbstract:
This study aims to emphasize the need for a forensic accountant to detect the manipulation of financial statements and combat tax fraud, and to identify the tax fraud-detecting means used by the forensic accountant in Jordan. To this end, the researcher prepared a questionnaire which was distributed among 125 forensic accountants working in Jordanian accounting and auditing firms. After analyzing and testing the hypotheses using SPSS, the following outcomes were drawn: The forensic accountant has the qualifications, expertise and skills to detect tax fraud in financial statements as well as detect the manipulation of financial statements figures.
50
BHASIN, MADAN LAL. "Satyam’s Manipulative Accounting Methodology Unveiled: An Experience of an Asian Economy." International Journal of Business and Social Research 6, no. 12 (January 28, 2017): 35. http://dx.doi.org/10.18533/ijbsr.v6i12.1010.
Full textAbstract:
<p>Manipulative accounting practices are perennial and such practices have occurred in all eras, in all countries and affected millions of corporations. Unfortunately, there are few loopholes in accounting and auditing standards, which provide leeway and thus motivate accounting professionals to use aggressively manipulation practices. In fact, manipulative accounting (MA) involves the intentional cooking-up of financial records towards a pre-determined target. Every company indeed maneuvers the numbers, to a certain extent, as formally reported in its financial statements (FS) to achieve budgetary targets and generously reward senior managers. From Enron, WorldCom to Satyam, it appeared that window-dressing leading to MA is a serious problem that is increasing both in its frequency and severity, which undermines the integrity of financial reports and eroded investors’ confidence. The responsibility of preventing, detecting and investigating financial frauds rests squarely on Board of Directors and they should adopt preventive steps. Despite the raft of CG, and financial disclosure reforms, corporate accounting still remains murky and companies continue to find ways to play ‘hide-and-seek’ game with the system. Satyam computers were once the crown jewel of Indian IT-industry but were brought to the ground by its founders in 2009 as a result of financial manipulations in FS. The present study provides a snapshot of how Mr. Raju (CEO and Chairman) mastermind this maze of AM practices? Undoubtedly, Satyam scam is illegal and unethical in which computers were cleverly used to manipulate account books by creating fake invoices, inflating revenues, falsifying the cash and bank balances, showing non-existent interest on fixed deposits, showing ghost employees, and so on. Satyam fraud has shattered the dreams of investors, shocked the government and regulators and led to questioning of the accounting practices of auditors and CG norms in India. Finally, we recommend that “All types of MA practices should be legally recognized as a serious crime, and accounting bodies, law courts and regulatory authorities must adopt exemplary punitive measures to prevent such unethical practices.”</p>