An Empirical Attempt on determining an Adjusted Model of Accounting Manipulation Detection
Keywords:
earnings quality, accruals, accounting manipulation, IFRS, Fscore.Abstract
The quality of the information disclosed by
financial statements is fundamental on assuring an
optimal decision-making process. Determinants of
financial information quality are numerous, but
users’ focus must be especially on the accounting
compliance of firms’ accounting strategy with
current accounting regulation and international
best practice. Unfortunately, financial reporting
practice underline the opportunity of various
accounting manipulation practices used by the
preparers, leading in some cases to material
financial figures alteration, and consequently to
adverse selection in capital allocation. In this
article we try to adjust Dechow et al. (2011)
model to the Romanian economic environment.
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