Accounting fraud and how to model it with Dr. Daniel Beneish
Episode 108 · June 28th, 2023 · 34 mins 54 secs
About this Episode
Accounting fraud and how to model it with Dr. Daniel Beneish
The search for corporate and accounting fraud has become its own form of academic study with researchers and universities trying to determine the common threads that would offer the easiest path to discovering deceit. It is also fueled the sometimes highly profitable investment practice of “shorting” stocks.
One of the most established and well known tools for measuring possible accounting fraud is the Beneish M-score, a model that users say offer the best probabilistic tool for determining financial manipulation.
In this episode of the podcast we speak with the model’s namesake – Dr. Daniel Beneish of Indiana University– about the accuracy and limitations of the M-score and what it’s saying about earnings manipulation heading into the next 12 months.