Pode um investidor medianamente diligente detectar a manipulação dos resultados das empresas? Estudo do caso Worldcom

José António Moreira ()
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José António Moreira: Faculdade de Economia da U. Porto; CEF.UP; OBEGEF

OBEGEF Working Papers from OBEGEF - Observatório de Economia e Gestão de Fraude, OBEGEF Working Papers on Fraud and Corruption

Abstract: Adopting the financial scandals in the United States as the background context, the current study discusses whether it would have been possible an investor medianly diligent to detect signs of the earnings manipulation underlying such scandals. It proposes an easy methodology, based on a limited set of indicators and ratios, and applies it to the accounting information of WorldCom, infamous for being one of such scandals. The empirical evidence suggests that a year in advance that investor could have detected signs of accounting manipulation. The study makes two main contributions. It highlights the importance and power of such type of methodology; although implicitly, it shows that the main constraint the investor faces in detecting the scandals is mental and driven by the euphoric behaviour of the market at a given moment, eroding any criticism towards the company.

Pages: 29 pages
Date: 2013-06
New Economics Papers: this item is included in nep-acc
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