The Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis

Using logit analysis in cross section data, this paper examine the role of accounting data to develop a model for detecting factors associated with fraudulent financial reporting. The sample is comprised of 178 firms (66 with fraudulent financial reporting and 112 with non-fraudulent financial repor...

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Autor principal:	Mohammad Hossein Safarzadeh
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2012
Materias:	fradulent financial reporting fraud financial ratios logit analysis Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/bbcc597b29324351b42cd2e19ad85797
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spelling	oai:doaj.org-article:bbcc597b29324351b42cd2e19ad857972021-11-04T19:40:22ZThe Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis2008-89142476-292X10.22103/jak.2012.59https://doaj.org/article/bbcc597b29324351b42cd2e19ad857972012-06-01T00:00:00Zhttps://jak.uk.ac.ir/article_59_f2cae450b7fa31a22f448ddffbf19f28.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XUsing logit analysis in cross section data, this paper examine the role of accounting data to develop a model for detecting factors associated with fraudulent financial reporting. The sample is comprised of 178 firms (66 with fraudulent financial reporting and 112 with non-fraudulent financial reporting) listed in Tehran Stock Exchange (TSE) during the period of 1383-1386. Firms with fraudulent financial reports selected on the basis of 1) Inclution of company in TSE lists for reasons associated with falsification of financial data and 2) doing insider trading and the existence of court proceedings pending with respect to fraudulent financial reporting. After doing analysis ten financial ratios introduced for examination as potential predictors of fraudulent financial reporting. The results indicate that the model is accurate in classifying the total sample correctly with accuracy rate exceeding 82.98 percent. Also, results demonstrate that the models function effectively in detecting fraudulent financial reporting and can be of assistance to various users such as auditors, taxation and other state authorities, the banking system, and so on.Mohammad Hossein SafarzadehShahid Bahonar University of Kermanarticlefradulent financial reportingfraudfinancial ratioslogit analysisAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 1, Iss 1, Pp 137-163 (2012)
institution	DOAJ
collection	DOAJ
language	FA
topic	fradulent financial reporting fraud financial ratios logit analysis Accounting. Bookkeeping HF5601-5689
spellingShingle	fradulent financial reporting fraud financial ratios logit analysis Accounting. Bookkeeping HF5601-5689 Mohammad Hossein Safarzadeh The Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis
description	Using logit analysis in cross section data, this paper examine the role of accounting data to develop a model for detecting factors associated with fraudulent financial reporting. The sample is comprised of 178 firms (66 with fraudulent financial reporting and 112 with non-fraudulent financial reporting) listed in Tehran Stock Exchange (TSE) during the period of 1383-1386. Firms with fraudulent financial reports selected on the basis of 1) Inclution of company in TSE lists for reasons associated with falsification of financial data and 2) doing insider trading and the existence of court proceedings pending with respect to fraudulent financial reporting. After doing analysis ten financial ratios introduced for examination as potential predictors of fraudulent financial reporting. The results indicate that the model is accurate in classifying the total sample correctly with accuracy rate exceeding 82.98 percent. Also, results demonstrate that the models function effectively in detecting fraudulent financial reporting and can be of assistance to various users such as auditors, taxation and other state authorities, the banking system, and so on.
format	article
author	Mohammad Hossein Safarzadeh
author_facet	Mohammad Hossein Safarzadeh
author_sort	Mohammad Hossein Safarzadeh
title	The Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis
title_short	The Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis
title_full	The Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis
title_fullStr	The Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis
title_full_unstemmed	The Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis
title_sort	ability of financial ratios in detecting fradulent financial reporting: logit analysis
publisher	Shahid Bahonar University of Kerman
publishDate	2012
url	https://doaj.org/article/bbcc597b29324351b42cd2e19ad85797
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The Ability of Financial Ratios in Detecting Fradulent Financial Reporting: Logit Analysis

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