Financial Shenanigans : Evidence from Developing Countries In East Asia and South Asia
Leong, Siew Yean (2014) Financial Shenanigans : Evidence from Developing Countries In East Asia and South Asia. [Dissertation (University of Nottingham only)]
This study investigates the reported cases involved in financial shenanigans which subject to the enforcement actions by the authorities of selected developing countries in East Asia and South Asia between 2010 and 2012. The scope of this study includes the attempts used and causes of the financial shenanigans. This study finds that the most common attempt used by the sample companies is overstating the revenue and follows by manipulation of expenses and discretionary accounting. Revenue and expenses are the principal targets of earnings manipulation as it can affect the net earnings of a company. Based on the evidence from this study, the causes of financial shenanigans among the sample companies are (i) intend to go for initial public offerings, (ii) close to violation of debt covenants, and (iii) audited by non-major audit firms. However, evidence for sustaining equity overvaluation among sample companies is not visible.
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