Financial Statement Manipulations in the Eyes of Banks’ Commercial Loan Officers: A Research in Sivas City

Mehmet Demýr and Oznur Arslan

Journal of BRSA Banking and Financial Markets, 2015, vol. 9, issue 1, 47-81

Abstract: The purpose of this research is to study the opinions of banks' commercial loan officers on the practices of financial statement manipulation. In this context, this research seeks to identify the accounts in financial statements that are open to manipulation and that have a positive impact on credit rating. To this end, a questionnaire was conducted on commercial loan officers working in various banks around the city of Sivas, Turkey. Findings determined that out of 16 selected accounts; "sales", "capitals" and "trade payable" were rated very important in terms of credit rating; "due to shareholders" and “due from shareholders" were rated very open in terms of openness to manipulation. Besides, findings also suggested that commercial credit loan officers staying generally unstable that financial statements are manipulated and therefore they also consider some subjective factors, as well as financial statements, in the evaluation of credit applications.

Keywords: Financial Statement; Financial Statement Manipulations; Accounts which Affecting Credibility; Inclined Accounts for Manipulation (search for similar items in EconPapers)
JEL-codes: M40 M41 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:bdd:journl:v:9:y:2015:i:1:p:47-81

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