Beneish M-score and detection of earnings management in Italian SMEs

Christian Corsi, Daniela Di Berardino, Tiziana Di Cimbrini


Accounting literature on the reliability of financial information presents several mathematical models whose purpose is to identify the existence of values manipulations. The phenomenon is described as earnings management and presents a broad discussion concerning the search for suitable models to measure the distortions in values. In this respect, the present paper aims to compare the ability of two versions of the same mathematical model of classify the risk of earnings manipulation in a discriminant way.


Beneish M-score; accounting ratios; regression analysis; earnings management

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