Measuring fraud and earnings management by a case of study: Evidence from an international family business
The aim of this study is to estimate the probability of fraud and earnings management for a specific Spanish family business, Pescanova. In the context of financial statements, the Beneish model is used to detect fraudulent behavior. Our findings reveal that Pescanova presented propensity to commit...
| Main Authors: | , , |
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| Format: | info:eu-repo/semantics/article |
| Language: | English |
| Published: |
Elsevier
2023
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10835/14854 |
| _version_ | 1789406702276182016 |
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| author | Ramírez Orellana, Alicia Martínez Romero, María José Mariño Garrido, Teresa |
| author_facet | Ramírez Orellana, Alicia Martínez Romero, María José Mariño Garrido, Teresa |
| author_sort | Ramírez Orellana, Alicia |
| collection | DSpace |
| description | The aim of this study is to estimate the probability of fraud and earnings management for a specific Spanish family business, Pescanova. In the context of financial statements, the Beneish model is used to detect fraudulent behavior. Our findings reveal that Pescanova presented propensity to commit fraud and carried out aggressive accounting practices before the disclosure of its financial problems. The manipulation index and the probability of manipulation are used as indicators of fraud and earnings management. Results also show that Pescanova made aggressive accounting practices, through the manipulation of Day’s sales in receivables index and Total accruals to total assets. Next, we provided evidence that the Sales Growth index and Leverage index are aligned with the position of technical default shown by the prebankruptcy board of Pescanova. Our main contribution is demonstrating the validity of the model for the case of Pescanova. Therefore, the application of the Beneish model might have detected fraudulent behavior, in the years prior to Pescanova’s collapse. |
| format | info:eu-repo/semantics/article |
| id | oai:repositorio.ual.es:10835-14854 |
| institution | Universidad de Cuenca |
| language | English |
| publishDate | 2023 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oai:repositorio.ual.es:10835-148542023-12-19T13:29:49Z Measuring fraud and earnings management by a case of study: Evidence from an international family business Ramírez Orellana, Alicia Martínez Romero, María José Mariño Garrido, Teresa accounting fraud earnings management case study family business The aim of this study is to estimate the probability of fraud and earnings management for a specific Spanish family business, Pescanova. In the context of financial statements, the Beneish model is used to detect fraudulent behavior. Our findings reveal that Pescanova presented propensity to commit fraud and carried out aggressive accounting practices before the disclosure of its financial problems. The manipulation index and the probability of manipulation are used as indicators of fraud and earnings management. Results also show that Pescanova made aggressive accounting practices, through the manipulation of Day’s sales in receivables index and Total accruals to total assets. Next, we provided evidence that the Sales Growth index and Leverage index are aligned with the position of technical default shown by the prebankruptcy board of Pescanova. Our main contribution is demonstrating the validity of the model for the case of Pescanova. Therefore, the application of the Beneish model might have detected fraudulent behavior, in the years prior to Pescanova’s collapse. 2023-12-19T13:29:49Z 2023-12-19T13:29:49Z 2017 info:eu-repo/semantics/article Ramírez-Orellana, A., Martínez-Romero, M. J., & Mariño-Garrido, T. (2017). Measuring fraud and earnings management by a case of study: Evidence from an international family business. European Journal of Family Business, 7(1), 41–53. https://doi.org/10.1016/j.ejfb.2017.10.001 http://hdl.handle.net/10835/14854 10.1016/j.ejfb.2017.10.001 en https://doi.org/10.1016/j.ejfb.2017.10.001 Attribution-NonCommercial-NoDerivatives 4.0 Internacional http://creativecommons.org/licenses/by-nc-nd/4.0/ info:eu-repo/semantics/openAccess Elsevier |
| spellingShingle | accounting fraud earnings management case study family business Ramírez Orellana, Alicia Martínez Romero, María José Mariño Garrido, Teresa Measuring fraud and earnings management by a case of study: Evidence from an international family business |
| title | Measuring fraud and earnings management by a case of study: Evidence from an international family business |
| title_full | Measuring fraud and earnings management by a case of study: Evidence from an international family business |
| title_fullStr | Measuring fraud and earnings management by a case of study: Evidence from an international family business |
| title_full_unstemmed | Measuring fraud and earnings management by a case of study: Evidence from an international family business |
| title_short | Measuring fraud and earnings management by a case of study: Evidence from an international family business |
| title_sort | measuring fraud and earnings management by a case of study: evidence from an international family business |
| topic | accounting fraud earnings management case study family business |
| url | http://hdl.handle.net/10835/14854 |
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