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Detecting earning manipulation using the Beneish M-Score Model: Evidence from public listed companies in Malaysia

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Bibliographic Details
Main Authors: Amrizah, Kamaluddin, Leslie, Boni, Rohmawati, Kusumaningtias
Other Authors: amrizah@uitm.edu.my
Format: Article
Language:English
Published: School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP) 2023
Subjects:
Beneish M-Score Model
Earning manipulation
Share price
Malaysia stock market
Online Access:http://dspace.unimap.edu.my:80/xmlui/handle/123456789/78091
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spelling my.unimap-780912023-03-07T08:01:09Z Detecting earning manipulation using the Beneish M-Score Model: Evidence from public listed companies in Malaysia Amrizah, Kamaluddin Leslie, Boni Rohmawati, Kusumaningtias amrizah@uitm.edu.my Universiti Teknologi MARA Cawangan Selangor, Kampus Puncak Alam, Malaysia Faculty of Economics and Business, Universitas Negeri Surabaya, Indonesia Beneish M-Score Model Earning manipulation Share price Malaysia stock market Link to publisher's homepage at https://ijbt.unimap.edu.my This paper aims to examine the association between earning manipulation using the Beneish M-Score Model and share price with market capitalisation as the control variable among public listed companies (PLCs) in Malaysia. The study was performed over a four-year period from 2017 to 2020 using the financial data of 65 PLCs under the Financial Times Stock Exchange (FTSE) Bursa Malaysia Top 100 Index, including various industries except the financial service industry. The Beneish M-Score Model comprised eight variables or ratios to identify earning manipulations, namely Days Sales in Receivable Index (DSRI), Gross Margin Index (GMI), Asset Quality Index (AQI), Depreciation Index (DEPI), Sales Growth Index (SGI), Sales, General and Administrative Index (SGAI), Total Accruals to Total Assets (TATA), and Leverage Index (LVGI). The market price was measured using the year-end share price. The findings found that there was a weak negative association as well as a statistically insignificant relationship between earning manipulation and share price, which suggests that earning manipulation is influenced by other factors excluding share price. The findings did not support the argument that there was a significant relationship between earning manipulation and share price where companies had been discovered to have engaged in earning manipulation. The study is crucial for the stakeholders that expect companies to achieve the maximum returns and stability in investments and to protect owners’ rights. 2023-03-07T08:01:09Z 2023-03-07T08:01:09Z 2023-02 Article International Journal of Business and Technopreneurship, vol.13(1), 2023, pages 23-36 2231-7090 (printed) 2232-1543 (online) http://dspace.unimap.edu.my:80/xmlui/handle/123456789/78091 en School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP)
institution Universiti Malaysia Perlis
building UniMAP Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Perlis
content_source UniMAP Library Digital Repository
url_provider http://dspace.unimap.edu.my/
language English
topic Beneish M-Score Model
Earning manipulation
Share price
Malaysia stock market
spellingShingle Beneish M-Score Model
Earning manipulation
Share price
Malaysia stock market
Amrizah, Kamaluddin
Leslie, Boni
Rohmawati, Kusumaningtias
Detecting earning manipulation using the Beneish M-Score Model: Evidence from public listed companies in Malaysia
description Link to publisher's homepage at https://ijbt.unimap.edu.my
author2 amrizah@uitm.edu.my
author_facet amrizah@uitm.edu.my
Amrizah, Kamaluddin
Leslie, Boni
Rohmawati, Kusumaningtias
format Article
author Amrizah, Kamaluddin
Leslie, Boni
Rohmawati, Kusumaningtias
author_sort Amrizah, Kamaluddin
title Detecting earning manipulation using the Beneish M-Score Model: Evidence from public listed companies in Malaysia
title_short Detecting earning manipulation using the Beneish M-Score Model: Evidence from public listed companies in Malaysia
title_full Detecting earning manipulation using the Beneish M-Score Model: Evidence from public listed companies in Malaysia
title_fullStr Detecting earning manipulation using the Beneish M-Score Model: Evidence from public listed companies in Malaysia
title_full_unstemmed Detecting earning manipulation using the Beneish M-Score Model: Evidence from public listed companies in Malaysia
title_sort detecting earning manipulation using the beneish m-score model: evidence from public listed companies in malaysia
publisher School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis (UniMAP)
publishDate 2023
url http://dspace.unimap.edu.my:80/xmlui/handle/123456789/78091
_version_ 1772813130325295104
score 13.222552

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