SHS Web of Conf.
Volume 92, 2021The 20th International Scientific Conference Globalization and its Socio-Economic Consequences 2020
|Number of page(s)||8|
|Section||Behavioral Economics and Decision-Making|
|Published online||13 January 2021|
Detection of earnings management by different models
1 Sumy State University, Ukraine
2 University of Zilina, The Faculty of Operation and Economics of Transport and Communications, Department of Economics, Univerzitna 1, 010 26 Zilina, Slovakia
* Corresponding author: email@example.com
Research background: Earnings management means the usage of gaps in the legislative frameworks of individual countries and their accounting systems in the global world. Businesses thus adjust profits and revenues to the form that is desirable and desired for them. However, there is a very thin line between fraud and earnings management. By adjusting their financial statements, companies seek to impress potential investors and influence their own market position.
Purpose of the article: The main goal of the article is to describe the possibilities and methods of detection of earnings management in companies in aspects of globalization. The article contains a brief overview of theoretical knowledge and definitions about earnings management. The contribution of the article lies in the application of the selected method to a specific company and based on the outputs of the model to determine whether the company is using earnings management.
Methods: The scientific method of analysis was used in the article, on the basis of which the obtained information was necessary for further calculations. A calculation based on the Beneish model was used to determine the use of earnings management.
Findings & Value added: The output of the article is the application of the Beneish model in the detection of earnings management in a selected company. In the calculation process, pre-established theoretical knowledge on the issue and the numerical characteristics of the selected company were used. Finally, the application of earnings management in the company can be ruled out.
Key words: Earnings management / the Beneish model / the CFEBT model / the Q-DMFC 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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