scholarly journals IMPACTS OF EARNINGS MANAGEMENT ON CORPORATE FAILURE: A CASE STUDY OF WIRECARD

2021 ◽  
pp. 37-49
Keyword(s):  
Earnings Management ◽  
The Other ◽  
Annual Reports ◽  
Financial Health ◽  
Z Score ◽  
Bankruptcy Risk ◽  
Corporate Failure ◽  
Score Model ◽  
A Company

The purpose of this study is to find out whether earnings management has impacts on bankruptcy risk based on the data of Wirecard Company. The M-score of Beneish's (1999) model has been used to detect the probability of earnings management. On the other hand, the Z"-Score of Altman's (1968) model has been applied to detect Corporate Failure. Both the models are widely used models in their respective fields. The data from 2002 to 2019 were collected from the annual reports of the Wirecard Company. The result of M-Score indicates that earnings management has a significant impact on the corporate failure (Z-Score) of the company. This finding specifies that a financially distressed firm adopts earnings manipulations. The finding also implies that earnings manipulations harm the financial health of a firm. According to the findings, it can be suggested that to know the financial aspects of a company, both the (Beneish M-model and Altman Z-score model) models could be used concurrently. Beneish M-model is for detecting earnings management and the Altman Z-score model is for determining corporate failure. The novelty of the study is that no study was done on Wirecard Company focusing on the association between earnings management & bankruptcy risk.

scholarly journals Financial Soundness of Cement Industry of Bangladesh: An Empirical Investigation Using Z-score

2014 ◽  
Vol 1 (1) ◽  
pp. 16-22 ◽  
Author(s):  
A. N. K. Mizan ◽  
Md. Mahabbat Hossain
Keyword(s):  
Empirical Investigation ◽  
Raw Materials ◽  
Cement Industry ◽  
Annual Reports ◽  
Business Firm ◽  
Financial Health ◽  
Z Score ◽  
Financial Soundness ◽  
Financial Decision ◽  
Score Model

For measuring the financial health of a business firm, there are lots of techniques available. But the Altman’s Z-score has been proven to be a reliable tool across contexts. Bangladesh cement industry is a unique one because, the industry is producing a higher amount of cement than the local demand having no supply of local raw materials. The main objective of the study is to assess the fundamental financial health of this industry using Z-score model. All listed cement firms are considered in this study. The required information has been collected from the annual reports of the selected companies and from other sources. The study revealed that two firms, Heidelberg cement and Confidence Cement, are financially sound whereas other three are not in a good position. The findings of the study can be useful for the managers to take financial decision, the stockholders to choose investment options and others to look after their interest in the concern cement manufacturers of the country.

scholarly journals Using Beneish M-Score and Altman Z-Score models to detect financial fraud and company failure

2021 ◽  
Vol 69 (4) ◽  
pp. 20-29
Author(s):  
Snežana Knežević ◽  
Marko Špiler ◽  
Marko Milašinović ◽  
Aleksandra Mitrović ◽  
Stefan Milojević ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Financial Distress ◽  
Stock Exchange ◽  
Financial Statements ◽  
Z Score ◽  
Fraudulent Financial Reporting ◽  
Financial Decisions ◽  
Score Model ◽  
A Company

Bankruptcy is a risk that any company can face, regardless of its size. The importance of predicting a company's bankruptcy for years before its development is enormous, and it is important for financial sustainability. Financial reporting is an important platform for making financial decisions of investors and creditors. In recent years, the frequency of false financial reporting by firms has increased and there are concerns about investors' confidence in capital market. Academics and industry experts adopt a variety of risk management techniques to detect fraudulent financial reporting. A case study was applied in this paper. Based on publicly available financial data (disclosed financial statements) of a domestic textile company for the period 2017-2020, whose shares are listed on the stock exchange, a survey was conducted based on the application of Altman's Z-Score model and Beneish M-Score model. Financial distress is an important criterion to monitor when assessing the likelihood of fraud reporting. When a company is operating poorly, there is a greater motivation to engage in fraudulent financial reporting. The findings show that the results differ according to the applied method in terms of identifying the possibility of bankruptcy and the possibility of fraud in the financial statements of the observed company. The results of the study can be important to investors, auditors, regulators, bankers, tax and other government bodies.

scholarly journals THE ASSESSMENT OF BANKRUPTCY RISK OF COMPANIES FROM THE SECTOR OF DRYING AND STORAGE OF CROPS AND PLANTS

2021 ◽  
Vol 25 (3) ◽  
Author(s):  
Dragan Milić ◽  
Nedeljko Tica ◽  
Vladislav Zekić ◽  
Milana Popov ◽  
Anja Šepa ◽  
...  
Keyword(s):  
Cash Flow ◽  
Liquidity Risk ◽  
Z Score ◽  
Bankruptcy Risk ◽  
Business Conditions ◽  
Business Entities ◽  
Score Model ◽  
Cash Flow Risk ◽  
And Storage ◽  
A Company

Contemporary market conditions make all business entities confront various risks – credit risk, liquidity risk, cash flow risk and market risk. Companies should predict these particular business risks and manage them adequately in order to minimize their influence. The assessment of creditworthiness and bankruptcy risk has a major role in the process of prediction and management of company risks. The creditworthiness of companies presents their ability to meet financial obligations to their creditors contemporary business conditions recognize several methods for assessment of credit ability of entities. One of the most commonly used models for credit ability valuation, as well as prediction of bankruptcy likelihood in a company is the Altman's Z-score model. The main scope of this article is the assessment of bankruptcy risk by using Altman's Z-score model for the group of companies from the agricultural branch of drying and storage of fruit.

scholarly journals PENERAPAN MODEL ALTMAN Z-SCORE DALAM MENGUKUR POTENSI KEBANGKRUTAN (STUDI KASUS PADA PERUSAHAAN PERBANKAN BUMN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2018 & 2019)

2021 ◽  
Vol 7 (1) ◽  
pp. 148-158
Author(s):  
Rofinus Leki Rofinus Leki
Keyword(s):  
Financial Performance ◽  
Performance Improvement ◽  
Financial Distress ◽  
Safe Zone ◽  
The Other ◽  
Financial Health ◽  
Z Score ◽  
Gray Area ◽  
Sustainability Research ◽  
Score Model

Abstract: This   research   is   a   sustainability   research,   which   uses   the   same   non- manufacturing Altman Z-Score model, with the aim of re-examining the financial health sustainability of the four BUMN banks that the author has studied in 2017 and in 2019. The four BUMN banks are Bank Negara Indonesia (Persero) Tbk PT, Bank Rakyat Indonesia (Persero) Tbk. PT, Bank Tabungan Negara (Persero) Tbk PT,  Bank  Mandiri  (Persero)  Tbk  PT.  The  results  showed  that  PT.  Bank  BTN (Persero) Tbk has a Z-score that has improved in 2018 and 2019, compared to previous years, namely in 2014, 2015, 2016, and 2017. Currently PT. Bank BTN (Persero) Tbk., has moved from the potential financial distress into a "gray area" (improving). Meanwhile, the other three BUMN banks are consistently in the gray area category with a Z-score above 1.2 but below a Z-score of 2.9. The results of this study also show that there is a significant financial performance improvement in every BUMN banking company, but has decreased somewhat in 2019  at Bank BNI (Persero), Tbk. PT and Bank BRI (Persero) Tbk.PT. Be expected is   that   with   the   continuous   and   consistent   improvement   in   financial performance, the financial health position of BUMN Banking (Persero) Tbk can immediately move to the "safe zone".   Keywords: Financial Health of BUMN Banks, Altman Z-Score Model

The Effect of Bankruptcy Possibility on Audit Delay and Timeliness (Empirical Study on Manufacturing Companies Listed in Indonesian Stock Exchange in the Period of 2012-2016)

2019 ◽  
Vol 2 (2) ◽  
pp. 118-146
Author(s):  
Triana Meinarsih ◽  
Abdul Yusuf ◽  
Muhammad Zilal Hamzah
Keyword(s):  
Quantitative Research ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Z Score ◽  
Quality Of Accounting Information ◽  
Independent Variable ◽  
A Company

Audit delay and timeliness are important factors that influence the quality of accounting information in term of relevance. This study provides empirical evidence to answer the question of how bankruptcy possibility impacts on audit delay and timeliness.  This research studies manufacturing firms listed in Indonesian Stock Exchange (IDX) in the period of 2012-2016. Data are taken from official website of IDX. This study is a quantitative research that seek to find out relationship between independent variable and dependent variable. External secondary data used are annual reports accessed from IDX website. Measurement used is Z-Score Altman model prediction, while simple linear regression is employed as technical analysis. This study finds that bankruptcy possibility which is measured by ZScore is negatively influence audit delay and timeliness. Any decrease of Z-Score shows the possibility of a company experience bankruptcy and therefore causes audit delay and timeliness.

scholarly journals A STUDY ON FINANCIAL HEALTH OF SELECTED PUBLIC SECTOR MANUFACTURING COMPANIES OF INDIA : WITH REFERENCE TO Z-SCORE ANALYSIS

2021 ◽  
Vol 9 (08) ◽  
pp. 857-865
Author(s):  
Nidhi Sharma ◽  
◽  
Shivani Peppal ◽  
Keyword(s):  
Public Sector ◽  
Grey Zone ◽  
Manufacturing Companies ◽  
Financial Health ◽  
Z Score ◽  
Common Condition ◽  
Score Analysis ◽  
Score Model

Financial distressed from a decade has become a common condition for manufacturing companies of India. Many public sector manufacturing companies have also witnessing poor financial health. This study has examined the financial health of eighteen selected public sector manufacturing companies which are further divided into four sectors as Metal, Sugar, Paper and Textile. The examination of financial health of selected companies has been performed by calculating Altman Z-score model for four year prior to become distressed. And it has been found by the analysis that most of the company was in either distressed zone or in grey zone. The study also finds that Altman Z-Score Model is a perfect tool to examine the health of public sector manufacturing companies.

scholarly journals Health Check-up of Commercial Banks in the Framework of CAMEL: A Case Study of Joint Venture Banks in Nepal

2007 ◽  
Vol 2 (1) ◽  
pp. 41-55 ◽  
Author(s):  
Keshar J. Baral
Keyword(s):  
Commercial Banks ◽  
Large Scale ◽  
Joint Venture ◽  
Balance Sheet ◽  
Health Check ◽  
Annual Reports ◽  
Financial Health ◽  
Data Set ◽  
Business Studies

Using the data set published by joint venture banks in their annual reports, and NRB in its supervision annual reports, this paper examines the financial health of joint venture banks in the CAMEL framework. The health check up conducted on the basis of publicly available financial data concludes that the health of joint venture banks is better than that of the other commercial banks. In addition, the perusal of indicators of different components of CAMEL indicates that the financial health of joint venture banks is not so strong to manage the possible large scale shocks to their balance sheet and their health is fair. Journal of Nepalese Business Studies Vol.2(1) 2005 pp.41-55

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