Publication detail

Employing Creative Accounting Methods – Motivations, Risks, and Identification

PĚTA, J. SRBOVÁ, P.

Original Title

Employing Creative Accounting Methods – Motivations, Risks, and Identification

Type

article in a collection out of WoS and Scopus

Language

English

Original Abstract

Financial statements are an important source of information about a company for external users. Based on this information, many decisions are made, such as whether to buy the company or to provide a loan. Knowing this, company representatives may modify financial statement data using the creative accounting techniques. The reason is to improve the company's image in terms of meeting economic criteria or increasing the company's profitability. Several European studies report that up to 90% of companies present inaccurate information in their financial statements. Researchers use mathematical models (mainly the Beneish M-score model) to identify this tendency. Investments in such companies run the risk of failing to achieve the planned economic value or, in the worst case, of a complete devaluation of the investment, i.e. in case of bankruptcy of the company.

Keywords

Creative accounting, Beneish model, risk, value of company

Authors

PĚTA, J.; SRBOVÁ, P.

Released

10. 9. 2024

ISBN

978-80-248-4760-3

Book

Managing and Modelling of Financial Risks

Edition

12

Pages from

58

Pages to

66

Pages count

8

URL

https://www.ekf.vsb.cz/mmfr/en/proceedings/

BibTex

@inproceedings{BUT189546,
  author="Jan {Pěta} and Pavla {Srbová}",
  title="Employing Creative Accounting Methods – Motivations, Risks, and Identification",
  booktitle="Managing and Modelling of Financial Risks",
  year="2024",
  series="12",
  pages="58--66",
  doi="10.31490/9788024847603",
  isbn="978-80-248-4760-3",
  url="https://www.ekf.vsb.cz/mmfr/en/proceedings/"
}