Markets can get the confidence of investors enhancing the quality of governance and audit systems surrounding a firm. Financial reporting is a main component of them, being the basis for information necessary to inves...Markets can get the confidence of investors enhancing the quality of governance and audit systems surrounding a firm. Financial reporting is a main component of them, being the basis for information necessary to investors＇ decisions. Managers have a chance to manipulate information provided in financial statements, in order to offer a better image of a firm to its potential and effective investors. The objective of this study is to evaluate the possibility of detecting extreme cases of earnings management and to check the predictive ability of the discretionary accruals models on the event of fraudulent earnings restatement. Through the abuse of reporting incentives, a manager gives out false information that should be averted and punished by regulators in a fair market system. The authors check the efficacy of different earnings management detection models in predicting discretionary manipulations and study the correlation between the frequency of manipulation and the event of fraud.展开更多
By summarizing the factor of the financial statement fraud in existing research outcome, the paper confirms the discriminating characteristic of the financial statement fraud and sets up a theoretic model to discrimin...By summarizing the factor of the financial statement fraud in existing research outcome, the paper confirms the discriminating characteristic of the financial statement fraud and sets up a theoretic model to discriminate the financial statement fraud. Using radial basis function neural network, regarding to the swatch that the listed company that is punished by the Securities Regulatory Commission or the Ministry of Finance, and according to the clustering elements, validating across by set one aside, the paper verifies respectively the 22 characteristics and 31 characteristics of discriminating model. According to the clustering elements, validating across by set one aside, the paper verifies respectively the 31 characteristics and 8 characteristics selected by Fisher-ratio of discriminating model. The research outcome indicates the discriminating ability of the model including 8 characteristics is better elevated than the traditional model including 31 characteristics by comparing the disciplinary error and the forecast precision.展开更多
文摘Markets can get the confidence of investors enhancing the quality of governance and audit systems surrounding a firm. Financial reporting is a main component of them, being the basis for information necessary to investors＇ decisions. Managers have a chance to manipulate information provided in financial statements, in order to offer a better image of a firm to its potential and effective investors. The objective of this study is to evaluate the possibility of detecting extreme cases of earnings management and to check the predictive ability of the discretionary accruals models on the event of fraudulent earnings restatement. Through the abuse of reporting incentives, a manager gives out false information that should be averted and punished by regulators in a fair market system. The authors check the efficacy of different earnings management detection models in predicting discretionary manipulations and study the correlation between the frequency of manipulation and the event of fraud.
文摘By summarizing the factor of the financial statement fraud in existing research outcome, the paper confirms the discriminating characteristic of the financial statement fraud and sets up a theoretic model to discriminate the financial statement fraud. Using radial basis function neural network, regarding to the swatch that the listed company that is punished by the Securities Regulatory Commission or the Ministry of Finance, and according to the clustering elements, validating across by set one aside, the paper verifies respectively the 22 characteristics and 31 characteristics of discriminating model. According to the clustering elements, validating across by set one aside, the paper verifies respectively the 31 characteristics and 8 characteristics selected by Fisher-ratio of discriminating model. The research outcome indicates the discriminating ability of the model including 8 characteristics is better elevated than the traditional model including 31 characteristics by comparing the disciplinary error and the forecast precision.
