BENEISH MODEL FOR THE DETECTION OF TAX MANIPULATION: EVIDENCE FROM SLOVAKIA

• Authors: Bačo Tomáš , Baumöhl Eduard , Horváth Matúš , Výrost Tomáš
• Languages of publication: EN

Abstracts

EN

To test the usefulness of the Beneish model, we use a unique, not publicly available database from the Financial Administration of the Slovak Republic, aggregating the results of all on-site financial inspections conducted by this authority during 2015 – 2019. This database is paired with firm-level accounting data from the Registry of Financial Statements and the Business Register to obtain additional corporate governance data. Our results indicate that (a) the performance of the Beneish model is inferior for the Slovak data; (b) there are several significant financial variables with statistical and economic significance, but their relevance is conditional on the industry group; and (c) corporate governance indicators appear to be more relevant preventive factors of fraudulent behaviour, especially foreign owner-ship, female CEO and corporate social responsibility.

Keywords

EN

EARNINGS MANIPULATION; BENEISH MODEL; ACCOUNTING FRAUD; SLOVAKIA; CORPORATE GOVERNANCE

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2023
• Volume: 71
• Issue: 3
• Pages: 185 – 201

Contributors

author

Bačo Tomáš

• Ministry of Interior of the Slovak Republic, Kuzmányho 8, 040 01 Košice, Slovak Republic

author

Baumöhl Eduard

• https://orcid.org/0000-0002-5444-7348

author

Horváth Matúš

• https://orcid.org/0000-0001-7739-2071

author

Výrost Tomáš

• https://orcid.org/%280000-0002-8384-5724

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2023.03.01