Cluster analysis of the economic activity of Slovak companies regarding potential indicators of earnings management

Research background: All over the world, any information about earnings manipulation is very important for all stakeholders of companies. Therefore, it necessary to detect this situation in a certain way. The global practice has shown that appropriate create detection models and would be useful specify individual sectors or groups economic activities Purpose article: article aims financial ratios Slovak companies are globally used management. Based on hierarchical cluster analysis we identify (according international NACE classification) with similar characteristics. Methods: For efficient detection, high-quality up-to-date data required. We real from year 2018 obtained database Amadeus. After precise pre-preparation dataset, use standard clustering procedures. Using dendrogram, their identified. Findings & Value added: results show there exist logical categories activity Regarding potential manipulation, these as possible. characteristics can analyzed together, more accurate could created them.