scholarly journals Cluster analysis of the economic activity of Slovak companies regarding potential indicators of earnings management

2021 ◽  
Vol 92 ◽  
pp. 07018
Author(s):  
Marek Durica ◽  
Lucia Svabova
Keyword(s):  
Cluster Analysis ◽  
Earnings Management ◽  
Economic Activity ◽  
Value Added ◽  
Hierarchical Cluster ◽  
Financial Data ◽  
Earnings Manipulation ◽  
Economic Activities ◽  
Financial Characteristics ◽  
Manipulation Detection

Research background: All over the world, any information about the earnings manipulation is very important for all the stakeholders of the companies. Therefore, it is necessary to detect this situation in a certain way. The global practice has shown that it is appropriate to create detection models and it would be very useful to specify individual sectors or the groups of sectors of economic activities of companies. Purpose of the article: The article aims to the financial ratios of Slovak companies that are globally used in the detection of earnings management. Based on hierarchical cluster analysis we identify groups of economic activities (according to the international NACE classification) with similar financial characteristics. Methods: For efficient earnings manipulation detection, high-quality and up-to-date financial data is required. We used financial data of real Slovak companies from the year 2018 obtained from international database Amadeus. After a precise pre-preparation of the dataset, we use the standard clustering procedures. Using the analysis of the dendrogram, the groups of the companies with their economic activities are identified. Findings & Value added: The results of the analysis show that there exist logical groups of NACE categories of economic activity of companies with similar characteristics. Regarding potential earnings manipulation, companies in these groups are as similar as possible. Therefore, financial characteristics can be analyzed together, and more accurate detection models could be created for them.

scholarly journals INDICATORS OF UKRAINIAN INDUSTRIES’ COMPETITIVENESS CONSIDERING FACTOR OF HUMAN CAPITAL

2021 ◽  
Vol 1 (15) ◽  
pp. 60-65
Author(s):  
Ihor Oleksiv ◽  
◽  
Diana Mirzoieva ◽  
Keyword(s):  
Cluster Analysis ◽  
Human Capital ◽  
Economic Activity ◽  
Statistical Data ◽  
Value Added ◽  
Hierarchical Cluster ◽  
Labor Intensity ◽  
Current State ◽  
Export Competitiveness ◽  
Export Product

The aim of the article is to determine the types of economic activity of Ukraine with high export competitiveness, taking into account human capital. The stages of creation of an export product were elaborated, the main resource of which is human capital, the indicator of its efficiency – labor intensity, the results – the volume of output and the share of value added in output, and the foreign economic result – the share of exports. As a result of hierarchical cluster analysis, five clusters were defined, the current state of which was characterized by statistical data. In particular, outpacing coefficients were calculated for each cluster. As the result, recommendations were provided for clusters and the Ukrainian economy as a whole

scholarly journals Confronting South Africa’s water challenge: A decomposition analysis of water intensity

2016 ◽  
Vol 19 (5) ◽  
pp. 831-847 ◽  
Author(s):  
Marcel Kohler
Keyword(s):  
Water Resources ◽  
Water Conservation ◽  
Economic Activity ◽  
Decomposition Analysis ◽  
Value Added ◽  
Well Being ◽  
Freshwater Ecosystems ◽  
Economic Activities ◽  
Water Intensity ◽  
The Impact

Water is a vital natural resource, demanding careful management. It is essential for life and integral to virtually all economic activities, including energy and food production and the production of industrial outputs. The availability of clean water in sufficient quantities is not only a prerequisite for human health and well-being but the life-blood of freshwater ecosystems and the many services that these provide. Water resource intensity measures the intensity of water use in terms of volume of water per unit of value added. It is an internationally accepted environmental indicator of the pressure of economic activity on a country’s water resources and therefore a reliable indicator of sustainable economic development. The indicator is particularly useful in the allocation of water resources between sectors of the economy since in waterstressed countries like South Africa, there is competition for water among various users, which makes it necessary to allocate water resources to economic activities that are less intensive in their use of water. This study focuses on economy-wide changes in South Africa’s water intensity using both decomposition and empirical estimation techniques in an effort to identify and understand the impact of economic activity on changes in the use of the economy’s water resources. It is hoped that this study will help inform South Africa’s water conservation and resource management policies

scholarly journals Cluster analysis of the impact of blockchain technologies upon the development of the sectors of national economy

2021 ◽  
pp. 15-28
Author(s):  
Marat Rashitovich Safiullin ◽  
Azat Rafikovich Sharapov ◽  
Leonid Alekseevich Elshin
Keyword(s):  
Cluster Analysis ◽  
Russian Federation ◽  
National Economy ◽  
Economic Activity ◽  
Business Models ◽  
Value Added ◽  
Economic Environment ◽  
Economic Sectors ◽  
The Russian Federation ◽  
The Impact

Prospects for the development of national economy in the context of integration of blockchain technologies into the system of economic processes testify necessitate elaboration of the methods and algorithms for formalized assessment of their impact upon the key parameters of socioeconomic dynamics. If within scientific-and-expert space, one may occasionally come across the works dedicated to separate aspects of this scientific methodological problem, the questions of the impact of blockchain technologies upon individual economic sectors are yet to be explored within the information-analytical and scientific space. The methods of empirical research of the impact of blockchain technologies upon the parameters of economic development currently did not find their consolidated solution, and are of fragmentary nature. This research is an attempt to strengthen the positions of formalized approaches towards examination of the articulated scientific and practical problem. The subject of this research is the economic relations of economic agents pertaining to implementation of blockchain technologies in the economic activity and formation of the new business models. The object is the types of economic activity of the national economy of the Russian Federation and their sensitivity to the diffusion of blockchain technologies. The article offers an algorithm for studying the dynamics of gross value added of the economic sectors of the Russian Federation through the prism of possible transformation of the key parameters of functionality of the financial and real sectors of the economy as a result of diffusion of blockchain technologies. Leaning on the advanced hypotheses, the author builds co-integration models for the indicated types of economic activity, which reveal the contribution of exogenous factors that are being adjusted under the pressure of infiltration of the distributed data storage technologies into the economic environment to the degree of incremental value added. This allows conducting cluster analysis of the economic sectors under review in accordance of their sensitivity to institutional changes caused by integration of the blockchain technologies into the economic environment.

scholarly journals Demystifying Earnings Management Through Accruals Management: An Indian Corporate Study

2012 ◽  
Vol 37 (1) ◽  
pp. 49-56 ◽  
Author(s):  
Sandeep Goel
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Value Added ◽  
Discretionary Accruals ◽  
High Price ◽  
Earnings Manipulation ◽  
Net Income ◽  
Bottom Line ◽  
Earnings Growth ◽  
Management Issues

Earnings, the “bottom line” or “net income,” are the single-most important item in financial statements. They indicate the extent of company's value-added activities. They help in resource mobilization in capital markets. On account of the said importance of earnings, the management of the company is always interested in their reporting. This is where management exercises choices for reporting of earnings. The recent Satyam saga or Enron in the past are prime examples of misuse of flexibility in choosing the accounting methods and treatments by the management. Earnings management occurs when management uses discretion in financial reporting and in structuring transactions with the objective of securing private gains. Earnings management issues related to financial disclosure and reporting are increasingly relevant to the multitude of firm stakeholders. In the wake of these manipulative corporate practices, investors and managers are trying to understand whether there is widespread Enron-like manipulation of financial results among corporations or whether these scandals are just an aberration. A related issue for financial analysts, investors, and corporate executives is how to distinguish between earnings manipulation that ultimately proves to be fraudulent and the day-to-day struggles of managers to meet pre-determined targets by using various accounting flexibilities. An understanding of the financial statement effects of financial engineering transactions will thus help managers try to avoid future Satyams and Enrons and help to improve the climate for a common investor. A very important dimension of earnings management is that earnings manipulation is usually not the result of an intentional fraud, but the culmination of a series of aggressive interpretations of the accounting rules and application of aggressive operating activities. The end result is misstatement of the financial results by the people involved and realization by them when it gets too late. The typical case of earnings manipulation begins with a track record of success. The company or division has posted significant sales and earnings growth over recent years. Their stock price trades at high price earnings multiple but unfortunately, it is becoming more difficult for the company to maintain the sales and earnings growth as per the analysts� expectations. The management goes for creative accounting practices to manage their earnings. This study analyses the earnings management practices in corporate enterprises in India by examining the magnitude of discretionary accruals. DeAngelo Model has been used for calculating discretionary accruals in regard to potential earnings management for the study. It also explores earnings management issues with respect to industry classification in these enterprises. The sample was drawn from the top 25 listed profit-making companies for the year 2007. The period chosen for the study was 2002–03 to 2007–08. An examination of the units shows a definite presence of accrual management in the sample companies. Most of the units have been found to be exercising income-increasing discretionary accruals. The earnings creativity is further strengthened by industry parameters among the units.

scholarly journals ENTERPRISE`S ACTIVITIES MONITORING IN STRATEGIC MANAGEMENT

2019 ◽  
pp. 127-131
Author(s):  
Т. Vasilyeva ◽  
S. Lyeonov ◽  
N. Antoniuk ◽  
O. Tverezovska
Keyword(s):  
Economic Activity ◽  
Financial Stability ◽  
Value Added ◽  
Added Value ◽  
Economic Activities ◽  
Method Of Calculation ◽  
Strategy Of Development ◽  
Financial Condition ◽  
A Minor ◽  
Key Indicators

The article deals with the questions of formation of monitoring key indicators of enterprise financial and economic activity mechanism. Emphasized that the provision of adequate conditions for sustainable development and preservation of financial stability of domestic enterprises in today's economic realities require continuous monitoring of the main indicators of their activity, including the estimation of the financial condition of the company and its investment attractiveness. Analyzed one of the major domestic problems of the Ukrainian economy as the underfunding of the real sector of the economy is the result of the processes of financialization and globalization of world capital. It is proved that for today there is a necessity of formation of the mechanism of monitoring of key indicators of financial and economic activities of enterprises, the results of which can be applied for development of strategy of development of separate entity. The results of the analysis of the dynamics of direct investments into the economy of Sumy region showed a general decrease in volume and a minor volume of investments in the industry compared to other industries. The results of the study identified the key 2 indicator - investment attractiveness of the enterprise and the dynamics of added value and establishing acceptable for a specific enterprise corridor variations AV. Monitoring of such deviations in the dynamics will allow us to have adequate information to identify trends for future development of the enterprise. The article presents the method of calculation of added value based on the financial statements, which is one of the key indicators in predicting trends in the development of the enterprise. Keywords: monitoring, strategic development, financial and economic activity of the enterprise, investment attractiveness, value added, labor productivity, financial status, managerial decisions, forecasting of enterprise development.

scholarly journals Earnings management under a global magnifier

2021 ◽  
Vol 92 ◽  
pp. 02032
Author(s):  
Vladislav Krastev ◽  
Pavol Durana ◽  
Katarina Valaskova
Keyword(s):  
Earnings Management ◽  
Value Added ◽  
Emerging Countries ◽  
T Test ◽  
Earnings Manipulation ◽  
Similar Nature ◽  
Financial Modelling ◽  
Developed Markets ◽  
Research Gap ◽  
The Common

Research background: Legal earnings manipulation is current hot topic, which is evidenced by a significant number of academic articles from the countries of developed markets. But this issue has been still the research gap for the emerging countries. Slovakia and Bulgaria are emerging counties with the similar economic and political history. The existence of the purposeful earnings management is confirmed in both countries. Therefore, the enterprises from these countries are selected to the common comparison. Purpose of the article: The main purpose and the set target of delivered examination is to disclose significant conformity or discrepancy in the dimension of the legal managers’ earnings modification in the Slovakian and Bulgarian enterprises. Methods: The provided financial modelling used 1,089 Slovak enterprises and 1,421 Bulgarian enterprises. Two parametric tests were computed for this study. Fisher’s F-test to detect the ratio between the variances of the populations, and t-test for two independent samples to test provided hypothesis of the article. Findings & Value added: The paper aimed at the earnings before interest, taxes (EBIT) in two emerging countries under a global magnifier. It was detected that the dimension of financial managers’ earnings manipulations in the Slovakian and Bulgarian enterprises is not significantly different. The similar nature of the approach of the management to the earnings manipulation was identified.

scholarly journals THE SPREADING OF SMALL BUSINESS AND THE DYNAMICS OF WAGE SHARE IN THE VALUE ADDED BY SECTORS IN THE UKRAINIAN ECONOMY

2021 ◽  
Vol 5 (40) ◽  
pp. 556-568
Author(s):  
I. Verkhovod ◽  
D. Grybova ◽  
K. Chernenko ◽  
L. Khitsenko ◽  
S. Biliaiev ◽  
...  
Keyword(s):  
Small Business ◽  
Economic Activity ◽  
Positive Impact ◽  
Value Added ◽  
Jel Classification ◽  
Social Consequences ◽  
Added Value ◽  
Economic Activities ◽  
General Number ◽  
The Impact

Abstract. The article has been devoted to the assessment of the impact of the spreading of the small business on the position of the employees in the relationship of the distribution of the added value. It has been researched how the potential of the small business as for the mitigation of the negative social consequences of the deterioration of the macroeconomic situation has been realized in the different types of the economic activity. As the indicator of the spreading of the small business, the part of the small business in the general number of the employees has been used. As the indicator for the assessment of the position of the employees, it is the part of the wages consisting of the added value. The limitation of the domestic statistics does not allow modeling the dependence of these indicators neither with the help of the constructing of the panel (the necessary data is available only for ten types of the economic activity) nor the dynamic database (the data is available only from 2012 to 2015). Accordingly, we have resorted to the grouping of the types of the economic activity using the average of the geometric tempos of the growth of both indicators. For 2012 and 2015, the dramatic reduction of the part of the value for the wages in the complex of the added value of the economy as a whole and all, except only one of the types of the economic activities has been taken place in the Ukrainian economy. Such tendency suggests that the burden of the deterioration of the macroeconomic dynamics puts, mainly, on the employees, the recipients of the wages, depriving the domestic economy of the important sources of the resources for the investing in the development of the human capital. Using as the indicator of the spreading of the small business of its part in the general number of the employees, we haven’t got the empirical confirmation that the growth of the part of the small business in the structure of the employment improves the economic situation of the employees as for the proportion of the distribution of the added costs value (the growth of the part of the value on the wages in the complex of the added value of the generated types of the economic activity). Accordingly, we consider that in itself the redistribution of the general number of the employees in favor of the small business is not a sufficient condition for the improving of the features of the conditions of the reproduction of the personal resources of the Ukrainian economy. The results of the research haven’t confirmed the positive impact of the spreading of the small business on the realization of the economic interests of the employees in the process of the distribution of the added value between the wages and other elements. Keywords: small business, part of employees in small business, part of wages in added value, grouping of types of economic activities. JEL Classification D39, E24, H25 Formulas: 0; fig.: 0; tabl.: 3; bibl.: 22.

scholarly journals Advanced methods of earnings management: monotonic trends and change-points under spotlight in the Visegrad countries

2020 ◽  
Vol 11 (2) ◽  
pp. 371-400 ◽  
Author(s):  
Tomas Kliestik ◽  
Katarina Valaskova ◽  
Elvira Nica ◽  
Maria Kovacova ◽  
George Lazaroiu
Keyword(s):  
Earnings Management ◽  
Change Point ◽  
Value Added ◽  
Kendall Test ◽  
Break Point ◽  
Trend Test ◽  
Positive Trend ◽  
Earnings Manipulation ◽  
Individual Country ◽  
Monotonic Trend

Research background: Enterprises manage earnings in an effort to balance their profit fluctuations to provide increasingly consistent earnings in every reporting period. Earnings management is legal and very effective method of accounting techniques and may be used to obtain specific objectives of the enterprises involving the manipulation of accruals. Therefore, there is a need to analyze it in the context of group of countries, while the issue of their detection in the new ways appears.  Purpose of the article: The analysis of annual earnings before interest and taxes (EBIT) of 5,640 enterprises from the Visegrad Four during the period 2009–2018 confirms that the development of earnings management in these countries is not a randomness. Thus, the aim of this article is to determine the existence of positive trend in earnings management and to detect the change-point in its development for each Visegrad country. Methods: Grubbs test, Mann-Kendall trend test and Buishand test were used as appropriate statistical methods. Mann-Kendall test identifies significant monotonic trend occurrence in earnings manipulation in every country. Buishand test indicates significant years, which divides the development of EBIT into two homogenous groups with individual central lines. Findings & Value added: Based on the statistical analysis applied, we rejected randomness in the managing of earning, but we determined the trend of its increasing. The positive earnings manipulation was not homogenous in the analyzed period, however, a change-point was defined. Year 2014 was identified as a break-point for Slovak, Polish and Hungarian enterprises considering the earnings manipulation. Year 2013 was detected as a change-point in Czech enterprises. The methodical approach used may be very helpful for researchers from other countries to determine, detect and understand earnings management as well as for the investors to make decisions based on a specificities of an individual country.

THREATS TO ENSURE ECONOMIC SECURITY IN THE FIELD OF FOREIGN ECONOMIC ACTIVITY

2020 ◽  
pp. 49-57
Author(s):  
Avgustina S. Yakovleva ◽  
Elena G. Lyubovtseva
Keyword(s):  
Economic Activity ◽  
Value Added ◽  
Federal Budget ◽  
Economic Security ◽  
Economic Activities ◽  
Criminal Cases ◽  
National Interests ◽  
Significant Damage ◽  
Trade Turnover ◽  
Foreign Trade Turnover

Federal budget revenues from foreign economic activities have recently tended to decline. In the context of the coronavirus pandemic and increasing payments from the federal budget to support the most affected sectors of the economy and the population, the issues of ensuring sustainability of the income base become most pressing. Methods of statistical analysis were used to explore the topic of research. The article analyzes the dynamics and structure of revenues from foreign economic activity. Analysis of foreign trade turnover is carried out. The increasing role of value-added tax on goods imported into the country with a decrease in export customs duties is revealed. The illegal, including criminal, foreign economic activity causes significant damage to the national interests in the sphere of the economy, acting as one of the most serious threats to the economic security of Russia, as evidenced by the statistics of criminal cases initiated on customs offenses and the amount of additional accrued customs payments. The study concludes on the need to improve inter-country cooperation on customs issues to prevent possible threats to the economic security of the country.

Cluster Analysis of Industrial Transfer Park Based on Carbon Emission Intensity

2013 ◽  
Vol 291-294 ◽  
pp. 1550-1555 ◽  
Author(s):  
Jia Feng Fan ◽  
Hao Xu ◽  
Juan Yuan ◽  
Bang Zhu Zhu
Keyword(s):  
Cluster Analysis ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Value Added ◽  
Guangdong Province ◽  
Hierarchical Cluster ◽  
Industrial Transfer ◽  
Leading Industry ◽  
Emissions Intensity

The carbon emission control of Industrial Transfer Park is analyzed from four aspects. Metrics of these four aspects are energy consumption per industrial value added of leading industry, carbon emissions intensity of buildings, carbon emissions intensity of transportation and carbon sinks. On this basis, 36 industrial transfer parks in Guangdong province are analyzed with the method of Hierarchical cluster in order to explore practical measures to reduce carbon emissions in the parks.

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