Detecting Probable Earnings Manipulation in GSM Firms: A Case Study of Shekhawati Poly-Yarn Limited and W.S. Industries (India) Limited

Authors

  • Ms. Yamunaben Parikh Research scholar, Department of Business Studies, Sardar Patel university, Vallabh Vidyanagar
  • Prof. (Dr). Kamini Shah Research Guide, Professor, Department of Business Studies, Sardar Patel University, Vallabh Vidyanagar

DOI:

https://doi.org/10.31305/rrijm.2023.v08.n09.002

Keywords:

Earning Manipulation, Graded Surveillance Measure (GSM), Beneish M-Score, Dechow F-Score, Piotriski F-Score

Abstract

The Graded Surveillance Measure (GSM) aims to pinpoint companies having unusual price fluctuation in the market price of shares leading to the possibility of mischief or manipulations. Such raises the question that whether such companies have also cooked their books or not. Purpose: The case study attempts to detect probable manipulation in the financial reporting of two selected manufacturing firms (securities) under the GSM stages of NSE. Methodology:  The study has been carried out using a case study approach by employing various financial statement fraud (FSF) detection models such as Beneish M-Score, Dechow F-Score, Piotriski F-Score and Montier C-Score using their financial reports from the year 2017 to 2021. Outcome: The results show that Shekhawati Poly-Yarn limited and WS Industries Limited have several probable earnings manipulations as per M-score while the Dechow F score indicates no false representation in the financial information. For financial health, both firms are struggling to maintain their financial health during the study period.

Author Biographies

Ms. Yamunaben Parikh, Research scholar, Department of Business Studies, Sardar Patel university, Vallabh Vidyanagar

Yamuna Parikh received her Bachelor of Commerce degree from Sardar Patel University, Vallabh Vidyanagar, Gujarat, India. She received her Master of Commerce degree from Sardar Patel University, Vallabh Vidyanagar, Gujarat, India. She cleared the Gujarat State Eligibility Test and the National Eligibility Test in the subject of commerce. She also pursuing her PhD at Sardar Patel University, Vallabh Vidyanagar, Gujarat, India.

Prof. (Dr). Kamini Shah, Research Guide, Professor, Department of Business Studies, Sardar Patel University, Vallabh Vidyanagar

Prof. (Dr.) Kamini Shah currently working as a Dean and Professor at the Department of Business Studies, Sardar Patel University, Vallabh Vidyanagar. She has B.B.A., M.com., L.L.B. and Ph.D. degree. She has 27 Years of Teaching Experience and Industry experience of 3 Years. A total of 14 Awards were received in various research seminars/conferences/universities for research papers. Published 30 Articles in UGC Care Journals, 70 Articles in Referred and Reputed Journals, 35 Chapters in Edited Books, 2 Books Published and 4 Books Edited. 67 papers were presented in the national seminar and 21 papers were presented in the international seminar.

References

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Published

14-09-2023

How to Cite

Parikh, Y., & Shah, K. (2023). Detecting Probable Earnings Manipulation in GSM Firms: A Case Study of Shekhawati Poly-Yarn Limited and W.S. Industries (India) Limited. RESEARCH REVIEW International Journal of Multidisciplinary, 8(9), 07–17. https://doi.org/10.31305/rrijm.2023.v08.n09.002

Issue

Vol. 8 No. 9 (2023): RESEARCH REVIEW International Journal of Multidisciplinary

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Articles

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