Presented are a profile of a sample of earnings manipulators, their distinguishing
characteristics, and a suggested model for detecting manipulation. The model's variables
are designed to capture either the financial statement distortions that can result from
manipulation or preconditions that might prompt companies to engage in such activity. The
results suggest a systematic relationship between the probability of manipulation and some
financial statement variables. This evidence is consistent with the usefulness of accounting …

The primary goal of this study was to propose an algorithm using mathematical
programming to detect earnings management practices. In order to evaluate the ability of
this proposed algorithm, the traditional statistical models are used as a benchmark vis‐à‐vis
their time series counterparts. As emerging techniques in the area of mathematical
programming yield better results, application of suitable models is expected to result in
highly performed forecasts. The motivation behind this paper is to develop an algorithm …