Benford’s Law and Digital Analysis: Application on Turkish Banking Sector
Business and Economics Research Journal, Volume 4, Number 1, 2013, pp. 29-41.
14 Pages Posted: 8 Nov 2012 Last revised: 24 Jan 2013
Date Written: October 3, 2012
We investigate the effectiveness of Benford’s Law through an digital analysis of the off-balance sheet account disclosures made by Turkish Banks during the 1990-2010. We found that off-balance sheet account disclosures of the fiscal term 1999 doesn’t comply with Benford’s Law. Our finding is consistent with the Turkish Banks’ practices. We also provide evidence on 'The Law of Anomalous Numbers'. Our results indicate a link between economic policy and deviation from frequencies of Benford’s Law.
Keywords: Benford’s law, digital analysis, banking sector, fraud investigation
JEL Classification: G21, M42
Suggested Citation: Suggested Citation