Eastern European Economics, 1–29.
ISSN/ISBN: Not available at this time. DOI: 10.1080/00128775.2024.2428792
Abstract: In this study, two techniques are applied (Benford’s Law and the magnitude of discretionary accruals) to identify possible manipulations in the reported incomes of Romanian firms listed on the alternative market of the Bucharest Stock Exchange (BSE), for the period 2010–2022. The main results show an increasing trend of the analyzed firms to round up their reported net income. The differences in frequencies appear to be more important for large firms, audited by auditors affiliated to international networks, with a male chief financial officer (CFO) and less profitable. These results are generally confirmed by the discretionary accruals analysis.
Bibtex:
@article{,
author = {Costel Istrate and Mihai Carp},
title = {Earnings Management Detection, from Second Digit Frequencies to Discretionary Accruals: Evidence from the Alternative Market of the Bucharest Stock Exchange},
journal = {Eastern European Economics},
volume = {0},
number = {0},
pages = {1--29},
year = {2024},
publisher = {Routledge},
doi = {10.1080/00128775.2024.2428792},
URL = {https://www.tandfonline.com/doi/full/10.1080/00128775.2024.2428792},
}
Reference Type: Journal Article
Subject Area(s): Accounting