Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani

This study examines the predictive ability of financial ratios m predicting the likelihood of fraudulent financial statements in Malaysia. Thirteen financial ratios including the classical Altman (1968) Z-score and Beneish (1991) M-score are examined in this study. The sample consists of 122 matched...

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Main Author:	Mohd Dani, Radziah
Format:	Thesis
Language:	English
Published:	2013
Online Access:	https://ir.uitm.edu.my/id/eprint/17190/2/TM_RADZIAH%20MOHD%20DANI%20AC%2013_5.pdf
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id	my-uitm-ir.17190
record_format	uketd_dc
spelling	my-uitm-ir.171902022-04-11T03:23:29Z Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani 2013-06 Mohd Dani, Radziah This study examines the predictive ability of financial ratios m predicting the likelihood of fraudulent financial statements in Malaysia. Thirteen financial ratios including the classical Altman (1968) Z-score and Beneish (1991) M-score are examined in this study. The sample consists of 122 matched samples of fraud and non-fraud companies and covers an eight-year period of 2003 to 2010. The fraudulent financial statements cases were identified based on the revelation of fraud and lawsuits as well as the breaches of the regulations of Bursa Malaysia and Securities Commission. Using the logistic regression model and relevant diagnostic tests, the findings show that eight financial ratios have significant relationship with fraudulent financial reporting. The significant financial ratios are (i) debt-to-equity, (ii) sales-to-total assets, (iii) sales, general and administration expenses index, (iv) days sales in receivables index, (v), asset quality index, (vi) depreciation index, (vii) sales growth index, and total accruals-to-total assets. The Beneish (1991) m-score is associated with the fraudulent financial statements. This study concludes that financial ratios are useful in predicting the likelihood of fraudulent financial statements in Malaysia. In addition, this study will give benefits to a group of stakeholders that consist of policy makers & standard setters, professionals, investors and researchers on the significance ratios reflect to the fraudulent financial statements. 2013-06 Thesis https://ir.uitm.edu.my/id/eprint/17190/ https://ir.uitm.edu.my/id/eprint/17190/2/TM_RADZIAH%20MOHD%20DANI%20AC%2013_5.pdf text en public mphil masters Universiti Teknologi MARA Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
description	This study examines the predictive ability of financial ratios m predicting the likelihood of fraudulent financial statements in Malaysia. Thirteen financial ratios including the classical Altman (1968) Z-score and Beneish (1991) M-score are examined in this study. The sample consists of 122 matched samples of fraud and non-fraud companies and covers an eight-year period of 2003 to 2010. The fraudulent financial statements cases were identified based on the revelation of fraud and lawsuits as well as the breaches of the regulations of Bursa Malaysia and Securities Commission. Using the logistic regression model and relevant diagnostic tests, the findings show that eight financial ratios have significant relationship with fraudulent financial reporting. The significant financial ratios are (i) debt-to-equity, (ii) sales-to-total assets, (iii) sales, general and administration expenses index, (iv) days sales in receivables index, (v), asset quality index, (vi) depreciation index, (vii) sales growth index, and total accruals-to-total assets. The Beneish (1991) m-score is associated with the fraudulent financial statements. This study concludes that financial ratios are useful in predicting the likelihood of fraudulent financial statements in Malaysia. In addition, this study will give benefits to a group of stakeholders that consist of policy makers & standard setters, professionals, investors and researchers on the significance ratios reflect to the fraudulent financial statements.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Mohd Dani, Radziah
spellingShingle	Mohd Dani, Radziah Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani
author_facet	Mohd Dani, Radziah
author_sort	Mohd Dani, Radziah
title	Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani
title_short	Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani
title_full	Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani
title_fullStr	Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani
title_full_unstemmed	Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani
title_sort	financial ratios and fraudulent financial statements: evidence from malaysian fraud cases / radziah mohd dani
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2013
url	https://ir.uitm.edu.my/id/eprint/17190/2/TM_RADZIAH%20MOHD%20DANI%20AC%2013_5.pdf
_version_	1783733554632458240

Financial ratios and fraudulent financial statements: evidence from Malaysian fraud cases / Radziah Mohd Dani

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