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Diagnosing The Risk Of Manipulation In Financial Accounting Information. An M-Score Based Approach

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  • Marius-Sorin CIUBOTARIU

    (Stefan cel Mare University of Suceava, 720229, Romania)

  • Cristina-Raluca CERNOVSCHI

    (Stefan cel Mare University of Suceava, 720229, Romania)

Abstract

The information provided by accounting is the raw material for the reports used in the decision-making process, and attempts to compromise its quality affect both the company and external users, generating attitude changes and wrong decisions. Starting from this idea, the aim of our study is to assess and measure the quality of financial information reported by some companies listed on the Bucharest Stock Exchange in 2023, operating in the HoReCa, construction, IT and agriculture industries. In order to succeed our goal, we set out to identify the main research directions and apply the M-Score model to capture the level of vulnerability to financial statement manipulation techniques of certain industries. The results of the research will materialize in a synthesis of the main issues that need to be known by users of accounting information and in a hierarchy of the most secure areas of activity among those analyzed, in order to help stakeholders and prevent wrong decisions or misallocation of resources.

Suggested Citation

  • Marius-Sorin CIUBOTARIU & Cristina-Raluca CERNOVSCHI, 2024. "Diagnosing The Risk Of Manipulation In Financial Accounting Information. An M-Score Based Approach," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 12(3), pages 134-141, October.
    • Handle: RePEc:scm:ejafbu:v:12:y:2024:i:3:p:134-141
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    References listed on IDEAS

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    1. Ibtihal A. Abed & Nazimah Hussin & Mostafa A. Ali & Hossam Haddad & Maha Shehadeh & Elina F. Hasan, 2022. "Creative Accounting Determinants and Financial Reporting Quality: Systematic Literature Review," Risks, MDPI, vol. 10(4), pages 1-25, April.
    2. Diana Balaciu & Victoria Bogdan & Alina Beattrice Vladu, 2009. "A Brief Review Of Creative Accounting Literature And Its Consequences In Practice," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-16.
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    4. Ana-Maria BORES, 2023. "The Situation Of Firms In Financial Difficulty In Romania - A Brief Introspection," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 11(3), pages 153-163, October.
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