Application of Beneish M-Score Model and Data Mining to Detect Earning Manipulation

The persistence of financial statement is to determine the financial position of firms. In recent times, professional frauds are high which further affecting the financial reporting resulting in manipulation of earnings. In the present study, we aim to apply detection tool Beneish model to determine the financial indicator using logistic regression analysis. For the purpose, Companies listed in Indian stock market were examined. The results of the study found that selected companies were likely manipulated from M-s core results. It is recognized that the relationship is constructive. in earning manipulation and indicators like Sales & general index, are highly significant in detecting earning.