DETERMINING CHARACTERISTICS OF FINANCIAL STATEMENTS WHICH HAVE BEEN MADE INFORMATION MANIPULATION: AN IMPLICATION IN BORSA ISTANBUL

Abstract

The aim of the study is in the first step to determine any significant relation between financial variables and information manipulation in financial statements. The second step of the study is determining characteristics of financial statements which have been made information manipulation or not. Regression and discriminant analysis will be made with SPSS programme. In the study, businesses’ financial statements which are listed in Watchlist Market and businesses’ financial statements which are listed in Corporate Governance Index are compared about information manipulations in Borsa Istanbul. Businesses in watclist market don’t announce their financial information on time and exact so in the study watclist market is examined. Businesses in corporate governance index announce their financial statements to their stakeholders correctly, transparent and understandable. There are 30 businesses in Watclist Market in Borsa Istanbul but financial institutions and holdings are not included the analysis. So the last number about businesses in Watchlist Market is 14. There are 50 businesses are listed in corporate governance index. The same process is implemented in here. Financial institutions and holdings are not included the analysis and the last number about businesses in corporate governance index is 15. Analysis period is 2013-2015. Financial variables are debt to equity, return on assets, sales to total assets, net profit to sales, total debt to total assets, net working capital to total assets, inventory turnover, Z-score and gross profit to total assets.