Detecting Falsified Financial Statements Using Multicriteria Analysis: The Case of Greece

27 Pages Posted: 10 Dec 2000

See all articles by C. Zopounidis

C. Zopounidis

Technical University of Crete (TUC) - Department of Production Engineering and Management

Michael Doumpos

Technical University of Crete (TUC) - Department of Production Engineering and Management

Charalambos Spathis

Aristotle University of Thessaloniki - Department of Economics

Date Written: Undated

Abstract

This paper develops a model for detecting factors associated with falsified financial statements (FFS). A sample of 76 firms described over ten financial ratios is used for detecting factors associated with FFS. The identification of such factors is performed using a multicriteria decision aid classification method (UTADIS?UTilites Additives DIScriminantes). The developed model is accurate in classifying the total sample correctly. The results therefore demonstrate that the model is effective in detecting FFS and could be of assistance to auditors, to taxation, to Stock Exchange officials, to state authorities and regulators and to the banking system.

Keywords: Financial statements, Fraud detection, Multicriteria decision aid, Classification

JEL Classification: M49, M41

Suggested Citation

Zopounidis, Constantin and Doumpos, Michael and Spathis, Charalambos, Detecting Falsified Financial Statements Using Multicriteria Analysis: The Case of Greece (Undated). EFMA 2000 Athens. Available at SSRN: https://ssrn.com/abstract=250413 or http://dx.doi.org/10.2139/ssrn.250413

Constantin Zopounidis (Contact Author)

Technical University of Crete (TUC) - Department of Production Engineering and Management ( email )

University Campus
Chania
Crete, 73100
Greece
+30 28210 37236 (Phone)
+30 28210 69410, 37236 (Fax)

Michael Doumpos

Technical University of Crete (TUC) - Department of Production Engineering and Management ( email )

University Campus
Chania
Crete, 73100
Greece
+30 28210 37318 (Phone)
+30 28210 69410 (Fax)

Charalambos Spathis

Aristotle University of Thessaloniki - Department of Economics ( email )

Division of Business Administration
Thessaloniki
Greece
+30 2310 996465, 996688 (Phone)
+30 2310 996452 (Fax)

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