Applying Benford's law into Jordanian insurance companies to identify earning's manipulations

Firas Al-Rawashdeh

Business and Economic Horizons (BEH), 2017, vol. 13, issue 2

Abstract: This study is based on Benford’s law, which is widely used by researchers to find the indicators of manipulations of revenues and earnings. This study was conducted to ascertain the existence of indicators of manipulations in a 25 insurance companies in Jordan. Both the revenue and net income were taken from the companies' financial statements presented for the period from 2000 to 2015. The studied companies have been divided into two groups. The first group covered the firms that achieved a positive net income (profit) and the second group covered the companies that achieved a negative net income (loss). The earning manipulations existence is evaluated by testing the first digit and the second digit of the observations that are extracted from the financial statements of the listed insurance companies in Amman Stock Exchange.

Keywords: Financial Economics; Industrial Organization (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/264695/files/2 ... tions_pp.210-223.pdf (application/pdf)
https://ageconsearch.umn.edu/record/264695/files/2 ... 3.pdf?subformat=pdfa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pdcbeh:264695

DOI: 10.22004/ag.econ.264695

Access Statistics for this article

More articles in Business and Economic Horizons (BEH) from Prague Development Center (PRADEC) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().