Application Of Beneish M-Score Model In Detecting Probable Earnings Manipulation In Malaysian Public Listed Companies

Earnings manipulation involves alteration, adjustment, exploitation, and even timing of transactions in financial statements with the intention to report a sound economic performance company. This act could jeopardize company’s long run also make its stakeholders suffer significant losses. Therefore, tool detect or predict earnings would be helpful stakeholders, practitioners, regulators, academicians, professionals accounting field. Besides, an early detection is needed alarm enforcement agencies further investigations legal actions. aim this study analyse Beneish M-Score models eight variables likelihood engage case Malaysian PLCs (Public Listed Companies). The data 80 from 2015 2017 were gathered. applied Model as for anomalies red flags classify companies into two groups, which are manipulators non-likely manipulators. Independent T-tests analysed identify dominating ratios. results found that three indexes significantly different manipulators, Sales Growth Index (SGI), Total Accruals Assets (TATA) Days' Receivable index (DSRI). percentage had slightly decreased 2016 gradually increased 2017. Hence, inflation overestimation sales revenues, well accruals, signals manipulation.