Application of the M-Score Model to Test the Reliability of Financial Statements at Companies Listed on the Vietnamese Stock Market
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 06
Abstract
The reliability of financial statements is important to many people such as investors, corporate shareholders, and auditors. A reliable financial report is free from problems of fraud and manipulation by corporate management. Using the methodology and meta-analysis, the research team found that the application of the M-score model in Vietnam is not yet popular. The number of research papers on the M-score model is small and there is no research using this model to assess the reliability of financial statements. Research results with actual data from the unaudited financial statements of a typical enterprise show that the application of the M-score model to assess the reliability or detect fraud of financial statements is an appropriate fit. However, the research team also found that the M-score model also has a high probability of incorrect identification of unreliable financial statements. Therefore, from the research results, we recommend that investors, shareholders, and stakeholders use a combination of the M-score model together with other technical analysis tools to be able to identify whether a financial statement is reliable.
Authors and Affiliations
Thi Huong Tram Le, Thuy Vinh Nguyen, Thi Xuan Huong Le
Keywords
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- EP ID EP727178
- DOI 10.47191/jefms/v6-i6-57
- Views 31
- Downloads 0
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