ORCID
Marek Sylwestrzak 0000-0001-8962-8168
Abstract
This paper investigates irregularities in financial statements by applying the Beneish and Roxas models to Polish firms listed on the Warsaw Stock Exchange from 2015 to 2020. The total sample included 110 observations. The sample comprised companies that had received an adverse or disclaimer opinion by the auditors, but had not been fined by the Polish Financial Supervision Authority (KNF Board). The control firms were selected based on the industry as selected by the standard industrial classification code and on the financial year, with minimizing the difference in the size of total assets. The results indicate that the Roxas model revealed greater accuracy than the Beneish model on the tested sample. The use of logistic regression allowed a modification of the Beneish model to align it with the conditions of the Polish market. The modified Beneish model showed greater accuracy for the tested sample and companies fined by the KNF Board.
Recommended Citation
Sylwestrzak, Marek
(2024)
"Application of the Beneish Model
on the Warsaw Stock Exchange,"
Journal of Banking and Financial Economics: Vol. 2022:
No.
18, Article 1.
DOI: 10.7172/2353-6845.jbfe.2022.2.1
Available at:
https://press.wz.uw.edu.pl/jbfe/vol2022/iss18/1
First Page
5
Last Page
16
Page Count
12
Received Date
7 November 2022
Revised Date
2 June 2022
Accept Date
10 August 2022
Online Available Date
7 November 2022
DOI
10.7172/2353-6845.jbfe.2022.2.1
JEL Code
C46; G00; G30; M40; M42
Publisher
University of Warsaw