Application of Beneish M-score model on small and medium enterprises in Federation of Bosnia and Herzegovina
Application of Beneish M-score model on small and medium enterprises in Federation of Bosnia and Herzegovina
Author(s): Sanel Halilbegovic, Nedim Čelebić, Ermin Cero, Ivana Buljubašić, Anida MekicSubject(s): Economy, National Economy, Financial Markets, Public Finances
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: manipulative accounting; fraudulent activities; financial crime; forensic accounting; Beneish M-score;
Summary/Abstract: The last two decades have witnessed high-profile corporate accounting scandals and multi billion-dollar frauds. Since then, forensic accounting has been in focus and has played a prominent role in discovering financial statement frauds. This research aims to analyze the applicability of the Beneish M-Score model on small and medium enterprises (SMEs) in Federation of Bosnia and Herzegovina (FBiH). Based on a sample that includes 4,580 small and medium enterprises, data will be analyzed using audited financial statements in the period from 2008 to 2015. By using independent sample t-test, correlation, and regression, it has been concluded that Beneish model is indeed applicable on the market of FBiH and aids effectively in the detection of fraud in financial statements. The study describes the comparison of different industry sectors regarding the possible manipulators and serves as a solid foundation for further research in the area of forensic accounting.
Journal: Eastern Journal of European Studies
- Issue Year: 11/2020
- Issue No: 1
- Page Range: 146-163
- Page Count: 18
- Language: English