SHS Web Conf.
Volume 91, 2021Innovative Economic Symposium 2020 – Stable Development in Unstable World (IES2020)
|Number of page(s)||13|
|Section||Stable Development in Unstable World|
|Published online||14 January 2021|
Jones' Model and Its Modifications in the Conditions of the Slovak Republic
The University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics, Zilina, Slovakia
* Corresponding author: firstname.lastname@example.org
One of the key tasks of financial accounting from its beginnings to the present day is to determine the performance of the company. The financial statements should provide users with a true and fair view of the financial position and financial performance of the entity during the period. At present, profit represents the most frequently accepted measure of a company’s financial performance. An important prerequisite for profit as a reliable measure of performance is its quality, which can be influenced by various factors or techniques resulting from earnings management. This paper aims to compare the detection capability of the Jones model and its modifications for assessing the occurrence of earnings management in the conditions of the Slovak Republic. We use the regression analysis and comparison method, based on which we compare the detection capability of the Jones model and its modifications for assessing the occurrence of earnings management in the conditions of the Slovak Republic. The contribution of the paper lies in the observation of the Jones model and its modifications to determine a suitable model for assessing the existence of earnings management in companies in Slovakia, which will be the subject of future research.
Key words: Earnings relevance / earnings management / Jones model / Modifications of the Jones model
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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