Relationships Between the Beneish M-Score and Bankruptcy Models: Insights from Financial Models in Czech Manufacturing Firms

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12220%2F25%3A43910251" target="_blank" >RIV/60076658:12220/25:43910251 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/60076658:12510/25:43910251

Výsledek na webu

<a href="https://hrcak.srce.hr/342820" target="_blank" >https://hrcak.srce.hr/342820</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18045/zbefri.2025.2.7" target="_blank" >10.18045/zbefri.2025.2.7</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Relationships Between the Beneish M-Score and Bankruptcy Models: Insights from Financial Models in Czech Manufacturing Firms

Popis výsledku v původním jazyce

&quot;Many well-known cases worldwide demonstrate that even if companies appear financially strong, their actual accounting reality may differ. Uncovering fraudulent behaviour is difficult, so auditors, financial authorities, stock exchanges, etc., must detect and eliminate it. This paper aims to determine the relationship between the Beneish M-score model and two bankruptcy models, Altman’s Z-score and theCzech IN05 model. It verifies if there are significant differences in how these models classify firms, and whether the Beneish model aligns with them. The application part focuses on the 3,568 firms from the Czech manufacturing industry between 2015 and 2022, and uses the Bowker test for symmetry, working with paired data. The Beneish model showed that 34% of enterprises are at risk of fraud. The results of the analyses further confirmed the existence of systematic andstatistically significant differences between the classifications of companies according to the Beneish model and the bankruptcy models Alman Z-Score and IN05. Therefore, if companies tend to go bankrupt, it is not possible to determine whether they will tend to manipulate statements or not. Similarly, a tendency to manipulate financial statements cannot be demonstrated in companies with good financial health.&quot;

Název v anglickém jazyce

Relationships Between the Beneish M-Score and Bankruptcy Models: Insights from Financial Models in Czech Manufacturing Firms

Popis výsledku anglicky

&quot;Many well-known cases worldwide demonstrate that even if companies appear financially strong, their actual accounting reality may differ. Uncovering fraudulent behaviour is difficult, so auditors, financial authorities, stock exchanges, etc., must detect and eliminate it. This paper aims to determine the relationship between the Beneish M-score model and two bankruptcy models, Altman’s Z-score and theCzech IN05 model. It verifies if there are significant differences in how these models classify firms, and whether the Beneish model aligns with them. The application part focuses on the 3,568 firms from the Czech manufacturing industry between 2015 and 2022, and uses the Bowker test for symmetry, working with paired data. The Beneish model showed that 34% of enterprises are at risk of fraud. The results of the analyses further confirmed the existence of systematic andstatistically significant differences between the classifications of companies according to the Beneish model and the bankruptcy models Alman Z-Score and IN05. Therefore, if companies tend to go bankrupt, it is not possible to determine whether they will tend to manipulate statements or not. Similarly, a tendency to manipulate financial statements cannot be demonstrated in companies with good financial health.&quot;

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics

ISSN

1331-8004

e-ISSN

1846-7520

Svazek periodika

43

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

HR - Chorvatská republika

Počet stran výsledku

20

Strana od-do

465-884

Kód UT WoS článku

001654791400007

EID výsledku v databázi Scopus

2-s2.0-105027422910