Proceedings of the 6th International Conference on Advanced Research in Management, Economics and Accounting
Year: 2024
DOI:
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Investigation of Accounting Manipulation using the Beneish Model in the Hospitality Sector: A Research on Borsa Istanbul
Assist. Prof. Tuba Bora Kilinçarslan
ABSTRACT:
Accounting manipulation is the disclosure of a company’s financial position and results of operations to users of financial information by presenting them differently than they actually are. The aim of this study is to determine the likelihood of accounting manipulation in companies in the hospitality sector whose shares are traded on the Turkish Stock Exchange – Borsa Istanbul (BIST). For this purpose, the propensity for accounting manipulation among hotels, restaurants, and catering companies listed on BIST has been assessed using financial data from 2022 and 2023. The Beneish TR model, which was modified by adding two new variables and removing the sales growth index due to Türkiye’s high inflation rate, was employed for this analysis. In this study, the M-Score (Mi) values of 9 out of 14 companies in the hospitality sector operating in the BIST were calculated using the regression equation obtained as a result of the probit regression analysis of the Beneish TR model. The Shapiro-Wilk test was used to analyse whether the calculated Mi values were normally distributed or not, and it was found that the data were normally distributed at the 0.05 significance level (Sig.=0.190). Zi values were calculated and interpreted by converting Mi values into standardized normal variables. According to the results of the research, in the hospitality sector operating in BIST for which Zi values were calculated, it has been revealed that 4 out of the 9 companies may be involved in accounting manipulation, 3 of them have serious findings and 2 of them have very serious findings.
Acknowledgement: This study is supported by “Strengthening the Research Capacity of Turkey in Innovative Business Models for the Hospitality Sector (REMODEL)” project which is funded by the European Union’s Horizon Europe research and innovation programme under grant agreement No 101079203. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Research Executive Agency (REA). Neither the European Union nor the granting authority can be held responsible for them.
keywords: Accounting manipulation; Beneish Model; Borsa Istanbul; Hospitality sector; Türkiye