Applying Benford's law into Jordanian insurance companies to identify earning's manipulations

This study is based on Benford’s law, which is widely used by researchers to find the indicators of manipulations of revenues and earnings. This study was conducted to ascertain the existence of indicators of manipulations in a 25 insurance companies in Jordan. Both the revenue and net income were taken from the companies' financial statements presented for the period from 2000 to 2015. The studied companies have been divided into two groups. The first group covered the firms that achieved a positive net income (profit) and the second group covered the companies that achieved a negative net income (loss). The earning manipulations existence is evaluated by testing the first digit and the second digit of the observations that are extracted from the financial statements of the listed insurance companies in Amman Stock Exchange.


Issue Date:
2017-2017-2017
Publication Type:
Journal Article
ISSN:
1804-1205
Language:
English
Published in:
Business and Economic Horizons (BEH), Volume 13, Issue 2
Page range:
210-223
JEL Codes:
G22; M400; M480




 Record created 2017-11-06, last modified 2017-11-06

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