Category - Ishmael ARHIN

Dokuz Eylul University, Turkey

Patrick BIMPONG Ishmael ARHIN Thomas hezkeal Khela NAN Edward DANSO Pious OPOKU Arthur BENEDICT Grace TETTEY

Assessing Predictive Power and Earnings Manipulations. Applied Study on Listed Consumer Goods and Service Companies in Ghana Using 3 Z-Score Models

This study uses data from Ghana’s public listed consumer goods and service companies for the period of 2014-2018 to test the predictive power of Altman’s (2000), Taffler’s (1983), and Beneish’s (1999) models in detecting bankruptcy and Earnings Manipulation. Prediction power (accuracy) was tested for two Z-Score models: Altman’s (2000) revised model and Taffler’s (1983) model. All two models were found to have significant predictive power. Altman’s revised model was found to be accurate for listed consumer firms in Ghana at a predictive power rate of 66%. Taffler’s (1983) Z-Score model was equally found to be accurate for prediction at a higher predictive power of 88%. The Taffler (1983) model has a higher predictive power compared with Altman’s (2000) revised model. The Beneish (1999) model also revealed that the financial statements of the industry were manipulated at a different degree. The study recommends that stakeholders would be better protected when the three models are...

Read More
Aims & Scope

Expert Journal of Finance welcomes original academic articles to be published in open access.

Read more about Expert Journal of Finance→

Guide for Authors

This 'Guide for Authors' provides useful information about the publication process at Expert Journal of Finance.

Read 'Guide for Authors' →

Current Issue

Volume 5 of Expert Journal of Finance is now available online

View Current Issue →

Forthcoming Papers

View upcoming finance academic articles accepted for publication.

View Articles →

Send Your Article Now