Academic Research on Normalized Financial Statements

• Financialperformance analysis for construction industry, Kangari, R., Farid, F., & Elgharib, H. M. (1992).Journal of Construction Engineering and Management,118(2), 349-361. This article discusses the quantitative model based on the financial ratios alongside the assessment to the financial performance and the rating of a construction company and the chances of its survival in business. The following financial rates are used to develop models in analyzing the company; total liabilities against the net worth, current ratio, returns on total assets, return on net worth, total assets to revenues, and the revenues against the net working capital. These model also considers the characteristics of different trades in the construction industry and the effect in the company size. The model is developed for six different groups which are listed herein: operative builders, electrical works, general contractors, plumbing, heating, and air conditioning, and other specialty trades.
• Detecting falsifiedfinancial statements: a comparative study using multicriteria analysis and multivariate statistical techniques, Spathis, C., Doumpos, M., & Zopounidis, C. (2002).European Accounting Review,11(3), 509-535. This article discusses extensively on the innovative classification methodology that can be used in detecting firms that issue falsified financial statements (FFS) and any identification of the factors related to FFS.
• Applying FMCDM to evaluatefinancialperformance of domestic airlines in Taiwan, Wang, Y. J. (2008). Expert Systems with Applications,34(3), 1837-1845. This article, discussed the hypothesis being carried out, using the grey relation analysis to cluster financial ratios and to help in finding representative indicators. After which a fuzzy multi-criteria decision making (FMCDM) method was then applied to evaluate the financial performance of the airline. Lastly, empirical research on the financial performance of three domestic airline company in Taiwan is meticulously illustrated.
• The effect of experience with different sized clients on auditor evaluations of fraudulentfinancialreporting indicators, Hackenbrack, K. (1993).Auditing,12(1), 99. It is very significant to examine these fraud risks indicators, to know if they are indeed very helpful in the investigation reported as misconduct and any fraudulent cases in Malaysia. The outcome may be beneficial to researchers, by helping them develop a new fraud risk indicator that looks into the actual instances of fraud in Malaysia
• Financial statementfraud detection: An analysis of statistical and machine learning algorithms, Perols, J. (2011).Auditing: A Journal of Practice & Theory,30(2), 19-50. This research paper compares and contrasts the performance of six popular statistical and machine learning models used in detecting fraud in financial statements under different assumptions and misclassification costs against the figure of fraud firms against the nonfraud firms. These results led to research of fraud in financial statements and has proven to be useful for practitioners and regulators to improve fraud risks models.
• Application of TOPSIS technique forfinancialperformance evaluation of technology firms in Istanbul stock exchange market, Bulgurcu, B. K. (2012).Procedia-Social and Behavioral Sciences,62, 1033-1040. This article aims to propose a multi-criteria decision-making model to compare and contrast the financial performance of thirteen different Technology firms trading in the Istanbul stock exchange market.
• Evaluating accounting information systems that support multiple GAAP reporting usingnormalizedsystems theory, Vanhoof, E., Huysmans, P., Aerts, W., & Verelst, J. (2014, May). InEnterprise Engineering Working Conference(pp. 76-90). Springer, Cham. This article made use of a mixed approach method comprising of design science, using a case study research to evaluate the structure of Accounting Information System (AIS) that reports in multiple General Accepted Accounting Principles (GAAP), making use of the Normalised Systems Theory (NST). The application of the NST in accounting demonstrates its relevance in a non-software specific domain. However, this is the first evaluation carried out on AIS as regards evolvability.
• A note on cash flow and classification patterns offinancialratios, Gombola, M. J., & Ketz, J. E. (1983). Accounting Review, 105-114. This study revealed the cash flow computer by adjusting the net income in all deferrals and accruals. The best fit definition leads to the classification schemes in which cash flow ratios from a factor separate and distant from other factors of return ratios
• Dividend policy andfinancialdistress: An empirical investigation of troubled NYSE firms, DeAngelo, H., & DeAngelo, L. (1990). The Journal of Finance,45(5), 1415-1431. This article revealed the dividend policy amendments of 80 NYSE firms to protracted financial distress as a piece of evidence against multiple losses incurred during the 1980-1985 fiscal year.
• US reinsurance prices,financialquality, and global capacity, Weiss, M. A., & Chung, J. H. (2004).Journal of Risk and Insurance,71(3), 437-467. The complexity of property-liability insurance has led to many economic hypothesis and analysis birthing several theories yet; not a single theory can explain its totality. The significant discovery in this research was the capacity variables that were broken down by the considerable region of the world.
• Governmentwidefinancial statementsand credit risk, Johnson, C. L., Kioko, S. N., & Hildreth, W. B. (2012). Public Budgeting & Finance,32(1), 80-104. Recently the state government has been issuing well detailed financial reports in alignment with the statement No 34 of the Government Accounting Standards Board. There is likelihood to generate a well detailed and consistent set of government financial information.