Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir
Our study examines the readability of qualitative text in company annual reports in the attempt to detect fraud. The management obfuscation theory predicts that the management of a badly performed company tends to hide bad news by decreasing the readability of financial reports. Thus, it is believed...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Book Section |
| Language: | en |
| Published: |
Bahagian Penyelidikan dan Jaringan Industri, UiTM Melaka
2012
|
| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/68016/1/68016.pdf https://ir.uitm.edu.my/id/eprint/68016/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1833073897873866752 |
|---|---|
| author | Othman, Intan Waheedah Hassan, Hazlina Tapsir, Roszana |
| author_facet | Othman, Intan Waheedah Hassan, Hazlina Tapsir, Roszana |
| author_sort | Othman, Intan Waheedah |
| building | Tun Abdul Razak Library |
| collection | Institutional Repository |
| content_provider | Universiti Teknologi Mara |
| content_source | UiTM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | Our study examines the readability of qualitative text in company annual reports in the attempt to detect fraud. The management obfuscation theory predicts that the management of a badly performed company tends to hide bad news by decreasing the readability of financial reports. Thus, it is believed that there could have been hidden clues in the narrative disclosures that can be indicators of fraud. This study examines the application of a readability index tool as a proactive means in identifying fraud. The methodology is developed by using the Coh Metrix version 2 indices - Flesch Reading Ease Score Formula. Our findings show that prior to the fraud conviction, fraud firms have been using complex text readability. As such, this fraud detection technique may be of significance in assisting the auditors and other stakeholders in their assessment of a company. Findings of this study may give light to exploring further linguistic feature that can distinguish the fraudulent annual reports from those non-fraudulent annual reports. |
| format | Book Section |
| id | my.uitm.ir-68016 |
| institution | Universiti Teknologi Mara |
| language | en |
| publishDate | 2012 |
| publisher | Bahagian Penyelidikan dan Jaringan Industri, UiTM Melaka |
| record_format | eprints |
| spelling | my.uitm.ir-680162022-10-31T07:53:57Z https://ir.uitm.edu.my/id/eprint/68016/ Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir Othman, Intan Waheedah Hassan, Hazlina Tapsir, Roszana Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure Fraud. Swindling. Confidence games Our study examines the readability of qualitative text in company annual reports in the attempt to detect fraud. The management obfuscation theory predicts that the management of a badly performed company tends to hide bad news by decreasing the readability of financial reports. Thus, it is believed that there could have been hidden clues in the narrative disclosures that can be indicators of fraud. This study examines the application of a readability index tool as a proactive means in identifying fraud. The methodology is developed by using the Coh Metrix version 2 indices - Flesch Reading Ease Score Formula. Our findings show that prior to the fraud conviction, fraud firms have been using complex text readability. As such, this fraud detection technique may be of significance in assisting the auditors and other stakeholders in their assessment of a company. Findings of this study may give light to exploring further linguistic feature that can distinguish the fraudulent annual reports from those non-fraudulent annual reports. Bahagian Penyelidikan dan Jaringan Industri, UiTM Melaka 2012 Book Section NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/68016/1/68016.pdf Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir. (2012) In: RIID 2012: Innovation For Sustainable Growth. Bahagian Penyelidikan dan Jaringan Industri, UiTM Melaka, Alor Gajah, Melaka, p. 104. (Submitted) |
| spellingShingle | Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure Fraud. Swindling. Confidence games Othman, Intan Waheedah Hassan, Hazlina Tapsir, Roszana Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir |
| title | Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir |
| title_full | Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir |
| title_fullStr | Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir |
| title_full_unstemmed | Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir |
| title_short | Text readability and fraud detection / Intan Waheedah Othman, Hazlina Hassan and Dr. Roszana Tapsir |
| title_sort | text readability and fraud detection / intan waheedah othman, hazlina hassan and dr. roszana tapsir |
| topic | Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure Fraud. Swindling. Confidence games |
| url | https://ir.uitm.edu.my/id/eprint/68016/1/68016.pdf https://ir.uitm.edu.my/id/eprint/68016/ |
| url_provider | http://ir.uitm.edu.my/ |