Impacts and Losses Caused By the Fraudulent and Manipulated Financial Information on Economic Decisions

Tak Isa
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Tak Isa: The Bucharest Academy of Economic Studies, Romania

REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, 2011, vol. 12, issue 5, 929-939

Abstract: Nowadays the effects of the fraudulent and manipulated financial information have been more controversial. We should take into consideration that the financial losses caused by fraudulent or manipulated financial information are remarkable. Preventing the fraud in the financial information has been an important issue by auditors all over the world. As the American economy is the dominant economy may cause and affect the capital market mostly all over the world. In the last decade we can see the financial losses caused by the fraudulent and manipulated financial information rather big. Today’s world has been affected by frauds and manipulation of the financial information. An investment decision based on false financial information causes the investors to suffer losses as was experienced in Enron and WorldCom cases. Financial information has, certainly, an important positive or negative effect in economic decisions. Positive or negative effects of financial information on economic decisions depend on reliability of the financial information. This paper aims to show the impacts of fraudulent on the financial information, effects on economic decision and what we should do for preventing the fraudulent or manipulation on the financial information.

Keywords: Financial information; fraudulent; manipulation; decision. (search for similar items in EconPapers)
JEL-codes: G14 G15 M41 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (6)

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