USING ALTMAN'S Z-SCORE FOR DETECTING CASES OF FINANCIAL RESULTS MANIPULATION IN SERBIAN PUBLIC COMPANIES
Abstract:
This study explores the use of Altman's Z-Score index as a tool for detecting possible cases of financial results manipulation among business entities in the Republic of Serbia. In recent years, concerns regarding the integrity of financial reporting have intensified, requiring robust methods for identifying irregularities and safeguarding investor interests. Drawing upon a research sample consisting of 56 year observations of business entities, observed in 2018 and 2019 reporting periods, this study employs quantitative analysis techniques to evaluate the financial health and stability of sampled companies. By calculating Z-scores and matching results with issued auditor opinion type, deviations from expected values, potential anomalies indicative of manipulation are identified and scrutinized. Results show that calculated score matches audits opinion type in app. 71.35% of cases. The results of this study enrich the existing body of knowledge on financial fraud detection and corporate governance by showcasing the effectiveness of Altman's Z-Score index in the context of Serbian corporations.
CITATION:
IEEE format
D. Svirčević, “Using Altman's Z-Score for Detecting Cases of Financial Results Manipulation in Serbian Public Companies,” in FINIZ 2024 - Social Media and Contemporary Business, Belgrade, Singidunum University, Serbia, 2024, pp. 37-41. doi: 10.15308/finiz-2024-37-41
APA format
Svirčević, D. (2024). Using Altman's Z-Score for Detecting Cases of Financial Results Manipulation in Serbian Public Companies. Paper presented at FINIZ 2024 - Social Media and Contemporary Business. doi:10.15308/finiz-2024-37-41
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