Studying the specifics of manipulation of financial statements in organizations of the construction sector

2020 ◽  
Vol 19 (9) ◽  
pp. 1614-1645
Author(s):  
V.G. Kogdenko ◽  
A.K. Zavalishina
Keyword(s):  
Financial Statements ◽  
Poor Quality ◽  
Financial Indicators ◽  
Construction Sector ◽  
Return On Assets ◽  
High Productivity ◽  
Financial Activity ◽  
Capital Labor Ratio ◽  
Scientific Principles ◽  
General Scientific

Subject. We identify the signs of manipulating the financial statements in the construction sector organizations. Objectives. We focus on developing the analytical procedures to detect the signs of financial statements manipulation, namely, the so-called window dressing. Methods. The methodological basis rests on general scientific principles and methods of research, like abstraction, generalization of approaches of domestic and foreign authors to the detection of manipulation of reporting, and statistical methods of information processing. Results. We developed a classification of methods for manipulation of unsound improvement of financial statements, assessed the likelihood of misstatement of financial statements, identified the elements of poor quality items, proposed a method to detect the manipulation of reporting, based on the comparison of substandard financial statement items with reliable items and/or non-financial indicators. We tested the methodology on the data of enterprises, operating in the construction sector. Conclusions. The study found that a likely manipulator is, usually, a micro-enterprise or a small company that does not have a credit limit, has significant relative performance of assets and liabilities of low quality, while showing high productivity and high return on assets at the average level of capital/labor ratio, and characterized by low investment and financial activity.

scholarly journals The Effect of Disclosure and Transparency Criteria In Saudi Banks on The Financial Ratios Indicators

2019 ◽  
Vol 25 (116) ◽  
pp. 290-303
Author(s):  
Mohammad Kamal Kamel Afaneh
Keyword(s):  
Performance Indicators ◽  
Banking Sector ◽  
Saudi Arabian ◽  
Financial Statements ◽  
Monetary Authority ◽  
Financial Indicators ◽  
Return On Assets ◽  
Time Period ◽  
Before And After ◽  
The Impact

The study aimed to measure the effect of applying the disclosure and transparency standards criteria adopted by the Saudi Arabian Monetary Authority on improving performance indicators in the Saudi banking sector, by measuring the extent of the impact of the bank's financial indicators represented by liquidity, profitability and return on assets in Saudi banks by applying the criteria of disclosure and transparency, which is one of the Main principles in the list of governance, which was approved by the Saudi Arabian Monetary Authority. The analytical approach was followed to achieve the goal of the study, as the financial statements of Saudi banks were analyzed during a period of 8-year to test four hypotheses related to measuring the presence of statistically significant differences between the performance indicators of banks before and after applying the disclosure and transparency standards imposed on Saudi banks. The results of the research confirmed the existence of an inverse relationship between the bank’s liquidity and the percentage of Saudi banks ’profits. The more liquidity, the lower the profitability level of banks, which indicates that the high liquidity in Saudi banks has led to a low profitability in this time period, and the study recommended that The need to pay attention to the concept of disclosure and transparency among all related parties in Saudi banks, and banks should find a balance between liquidity and profitability  

scholarly journals Can Impairment Recognition under IAS 36 Be Improved by Financial Performance?

2016 ◽  
Vol 8 (12) ◽  
pp. 163
Author(s):  
Mohammad Ebrahim Nawaiseh
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Indicators ◽  
Accounting Quality ◽  
Financial Leverage ◽  
Return On Assets ◽  
Public Companies ◽  
Return On Equity ◽  
High Standards

<p>The study seeks first to examine how companies implement impairment test as required by IAS 36.Secondly, to explore and evaluate factors which may explain the effect of specific financial indicators on impairment loss. Quantitative analysis of a panel data sample of (30) companies listed on the Amman Stock Exchange (ASE) over 2005-2008 was carried out. Despite the fact that sample of companies listed on the ASE supposed to implement IAS36; only (41.10%) of the sample recorded an impairment recognition loss (30 out of 73). We find that impairment loss ratio showed fluctuated trends. We also find that probability of an impairment loss is positively affected by company size (SIZE) and operating cash flows (OCF). Research also reported a positive significant relationship between financial leverage (LEV), return on assets (ROA) and return on equity (ROE) .This can be explained by most public companies utilize financial leverage heavily to increase (ROA) and (ROE). We confirm insignificant statistical positive relationship between profitability measured by (ROA) and impairment loss recognition (IMP). Other controlling variables such as LEV; has a negatively insignificant relationship with IMP. This paper introduces necessary background and fundamentals to understand current practice of impairment recognition in Jordan. To urge Companies to use high standards of accounting quality in their financial statements according to IASs, this presentation would attract investors’ attention and would further reinforce the credibility of their financial statements.</p>

Estimasi Pengaruh Faktor Internal Bank dan Stabilitas Makroekonomi terhadap Profitabilitas dengan Mediasi Rasio Pembiayaan Bermasalah di PT Bank Muamalat Indonesia

2020 ◽  
Vol 3 (2) ◽  
pp. 93-108
Author(s):  
Annisa Siti Fathonah ◽  
Dadang Hermawan
Keyword(s):  
Secondary Data ◽  
Financial Statements ◽  
Significant Positive Effect ◽  
Return On Assets ◽  
Internal Factors ◽  
Macroeconomic Factors ◽  
Operating Income ◽  
Significant Negative Effect ◽  
Negative Effect ◽  
Positive Effect

This study aims to determine and analyze how much influence the bank's internal factors such as Equity, Operational Costs per Operating Income (BOPO), Financing Deposit to Ratio (FDR), Non Performing Financing (NPF) as a mediator and external or macroeconomic factors namely inflation and Gross Domestic Product (GDP) on profitability represented by Return on Assets (ROA) at Bank Muamalat Indonesia for the period 2008-2018. The data used in this research are secondary data obtained from the publication of quarterly financial statements from 2008 to quarter 2 of 2018. The method that used in this research is path analysis with SPSS 20.0 as the analytical tool. The results of the study partially test the hypothesis (t-test), in substructure I shows that the capital variable has a significant negative effect on NPF, BOPO and inflation has a significant positive effect on NPF, FDR and GDP do not significantly influence NPF at Bank Muamalat Indonesia. In substructure II partially, Capital, BOPO, significant negative effect on ROA, FDR and NPF has a significant positive effect on ROA, Inflation and GDP does not significantly influence ROA while simultaneously significantly influencing ROA. Based on the sobel test, capital has a significant effect on ROA through NPF, BOPO has a significant effect on ROA through NPF, FDR has a significant effect on ROA through NPF, Inflation has a significant effect on ROA through NPF, while GDP has no significant effect on ROA through NPF.

Specifics of capital structure management of electronic commerce market leaders

2020 ◽  
Vol 16 (5) ◽  
pp. 905-919
Author(s):  
R.O. Voskanyan
Keyword(s):  
Capital Structure ◽  
Customer Service ◽  
Financial Statements ◽  
Financial Resources ◽  
Ratio Analysis ◽  
Timely Manner ◽  
Aggressive Approach ◽  
Scientific Methods ◽  
General Scientific ◽  
Management Policies

Subject. The article addresses leader companies of the e-commerce market in terms of sales and capitalization, that make their financial statements publicly available. Objectives. The aim is to identify special aspects of capital structure management policies of the largest e-commerce players based on ratio analysis. Methods. The study employs general scientific methods of research. Results. The paper reveals the specifics of capital structure management of the global e-commerce market leaders. The leading companies prefer an aggressive approach to the formation of their capital structure, increasing the volume of borrowed capital in comparison with their equity. The management of companies tries to provide a moderate approach to capital structure management and debt servicing, demonstrating the ability to repay debts in a timely manner. Aggressive capital structure policy is conditioned by specific activities of e-commerce companies, requiring constant search for and attraction of additional financial resources for improving production processes by management. Conclusions. Key players have an aggressive capital structure policy. This feature is necessitated by the need to systematically attract additional financing to expand the business, increase sales volumes, capture and create new markets. E-commerce companies have to constantly improve technology, logistics processes, and render a good and excellent customer service.

Researching the public procurement system: An analysis of winning organizations

2020 ◽  
Vol 16 (5) ◽  
pp. 860-884
Author(s):  
V.G. Kogdenko ◽  
A.A. Sanzharov
Keyword(s):  
Public Procurement ◽  
The Public ◽  
Debt Capital ◽  
Scientific Principles ◽  
General Scientific ◽  
Marketing Information ◽  
High Level ◽  
Return On Sales ◽  
Procurement System ◽  
Social Components

Subject. The article deals with the analysis of suppliers in the public procurement system based on reasonable prequalification parameters. Objectives. The aim is to test the hypothesis about strong reputation characteristics of the winners in the public procurement system and develop a methodology for assessing the reputation of suppliers for prequalification purposes. Methods. We employ general scientific principles and methods of research, like abstraction, generalization of approaches used by domestic and foreign authors for prequalification and assessment of reputation of public procurement participants. Results. To test the hypothesis, we calculated four groups of indicators on corporate, financial, market, and social components of reputation. The methodology was tested on the data obtained from SPARK-Interfax and SPARK-Marketing information resources. Conclusions. The study revealed that not all reputational characteristics of public procurement winners can be regarded as high level. In terms of the corporate component, it is the low level of share capital, indicating the mistrust on the part of owners and their reluctance to invest in the business, and the low percentage of non-current assets. In terms of the market component, it is a low sales growth rate, as well as low return on sales. As to the financial component, it is a low capitalization of winners, low share of long-term debt capital and low credit limit. With respect to the social component, it is a below-average tax burden.

DETERMINAN TIMELINESS OF FINANCIAL REPORTING PADA INDUSTRI MANUFAKTUR INDONESIA

2017 ◽  
Vol 2 (1) ◽  
pp. 73
Author(s):  
Mohamad Zulman Hakim
Keyword(s):  
Financial Reporting ◽  
Manufacturing Industry ◽  
Sampling Method ◽  
Stock Exchange ◽  
Financial Statements ◽  
Company Size ◽  
Return On Assets ◽  
Financial Report ◽  
Independent Variables ◽  
Equity Ratio

This study aims to prove empirically the factors that affect the Timeliness of Financial Reporting. These factors are Return on Assets (ROA), Debt to Equity Ratio (DER), Company Size and Auditor Opinion as Independent Variables and Timeliness of Financial Statements as Dependent Variables.The population of this study is the Manufacturing Industry listed on the Indonesia Stock Exchange period 2012-2014. The sample was determined by purposive sampling method and 66 companies were obtained. The data used are obtained from the published company financial report. The method of analysis used is logistic regression at 5% significance level.Empirical study shows that ROA has significant effect on Timeliness of Financial Reporting. DER, Company Size and Auditor Opinion have no significant effect on Timeliness of Financial Reporting. Keywords:    ROA, DER, Company Size, Auditor Opinion, Timeliness of Financial Reporting

PENGARUH CAR, LDR DAN ROA TERHADAP LABA PERUSAHAAN PERBANKAN TERDAFTAR DI BURSA EFEK INDONESIA

2018 ◽  
Vol 23 (1) ◽  
pp. 72-85
Author(s):  
Lasminisih ◽  
Emmy Indrayani
Keyword(s):  
Decision Making ◽  
Multiple Regression ◽  
Stock Exchange ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Financial Statement ◽  
Return On Assets ◽  
Capital Adequacy Ratio ◽  
A Company ◽  
Future Plans

Company financial statement can be used to monitor the performance of a company. Financial statements are also used as a means for decision making so that the company can anticipate future plans. The purpose of this study was to find out the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Return on Assets (ROA) on profit changes percentage of Banking Companies. The number of sample companies used in this study was 27 Banks listed in the Indonesia Stock Exchange with observation periods from 2007 to 2008. The method used in this study was multiple regression. The results of this study have indicated that CAR, LDR, and ROA gave significant effects on changes in Banks profit so that Banking Companies performances can be measured. Keywords: CAR, LDR, ROA, Profit

COMPARATIVE ANALYSIS OF INTERNATIONAL STANDARDS IN THE FIELD OF NON-FINANCIAL REPORTING AND THE PRACTICE OF THEIR APPLICATION

2021 ◽  
Vol 2 (4) ◽  
pp. 146-152
Author(s):  
E. V. ANDRIANOVA ◽  
◽  
P. S. SHCHERBACHENKO ◽  
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Business Environment ◽  
International Standards ◽  
Positive Trend ◽  
Financial Indicators ◽  
Additional Tool ◽  
Foreign Companies ◽  
High Level ◽  
Source Of Information

This article discusses and analyzes the most popular standards of non-financial reporting, which has a significant impact on the transformation of the business environment. Already, domestic and foreign companies with a high level of responsibility are beginning to publish non-financial statements in addition to financial statements, which is an additional tool for communication with stakeholders and a new source of information about their activities. To date, reports of this type are clearly unregulated, there are no verification standards, however, there is already a positive trend and the active introduction of non-financial indicators in the regular reporting of companies.

The practice of using earnings management methods under tax incentives absence and financial incentives restriction conditions

2021 ◽  
Vol 22 (8) ◽  
pp. 868-886
Author(s):  
Lyudmila S. MAKHAN'KO
Keyword(s):  
Earnings Management ◽  
Financial Incentives ◽  
Tax Incentives ◽  
Tax Burden ◽  
External Financing ◽  
Financial Indicators ◽  
Unique Character ◽  
Dividend Payments ◽  
Limited Application ◽  
General Scientific

Subject. This article analyzes the regularities of the processes of application of earnings management methods in the absence of tax incentives and in conditions of limited use of financial incentives. Objectives. The article aims to identify trends in the use of earnings management methods in the absence of tax incentives and in conditions of limited application of financial ones, and substantiate a set of analytical procedures for their identification to enhance the reliability of the organization's financial situation assessment. Methods. For the study, reviewing academic papers on the subject matter, I used the general scientific cognition methods of comparison, generalization, grouping, systematization, and the principle of historicism. Results. The article defines the most important financial incentives, including the tax ones, when earnings management is aimed at reducing or redistributing the tax burden, and financial incentives in terms of positioning in the stock market and adjusting dividend payments. The article finds the regularities of changes in individual financial indicators helping identify enterprises that likely use earnings management methods in terms of accounting for exchange rate differences. Conclusions and Relevance. The research shows that the probability of applying earnings management methods remains in the absence of discernible financial benefits in the short term in terms of reducing the tax burden or the possibility of attracting additional external financing in the financial markets. The unique character of the research lies in the study of the practice of applying earnings management methods in the absence of apparent financial incentives.

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