Detecting the manipulation of earnings in the company: triangulation of methods

Research background: Earnings management is a current topic in the world of financial management. It can be considered as global phenomenon today’s modern approach to reporting accounting information and related decisions managers, which may affect overall results statements. Many companies use earnings tool maintain stable profit growth or prevent “red numbers” from appearing statements that are not beneficial company. Purpose article: Understanding what represents why it performed essential for users company’s However, detecting manipulation easy, because successful if invisible. Therefore, statistical models usually used detect these practices. The aim this paper show several methods strengthens obtained more probably reveal possible companies. Methods: In study, we triangulation companies: one most frequently model area, Beneish model, but also Slovak M-score SVK, was created under inspiration finally, propensity score manipulation. Findings & Value added: study provides view possibilities applying three idea based on consideration all manipulation, very likely actually happens