Relation Between Difference of Financial Measure (Revenue Growth) and Nonfinancial Measure ( Employee Growth) with Fraudulent Financial Reporting

Authors

1 Assistant Professor of Islamic Azad University, Central Tehran Branch

2 Master of Accounting in Islamic Azad University, Central Tehran Branch,

Abstract

In this research the relation of discovering fraud between the financial measure(revenue growth) and non-financial measure(employee growth) are examined. Statistical samples of this study comprises of 80 companies, (40 fraudulent companies and 40 non-fraudulent companies) that have been listed in the Tehran Stock market for the period between 2005-2011. The fraudulent companies on the basis of listing on the shares and Stock market related by- 1) deflected financial reports and 2) hidden deals.
Research show the negative and meaningful relation between increase in revenue and the increase in number of employee and the differences between these two, and together their differences with the fraudulent financial reporting thereof. In a nutshell, the result of this research is expressed as that of discovering the fraud practiced in companies not only by way of financial measures but also through nonfinancial measures.

Keywords

Journal of Accounting and Social Interests
Volume 4, Issue 2 - Serial Number 13
September 2014
Pages 181-198

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History

  • Receive Date: 19 October 2013
  • Revise Date: 13 June 2018
  • Accept Date: 22 August 2014

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