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Reliability of Financial Information from the Perspective of Benford’s Law

Department of Accounting and Audit, The Bucharest University of Economic Studies, 010374 Bucharest, Romania
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Academic Editor: Stanisław Drożdż
Entropy 2021, 23(5), 557; https://doi.org/10.3390/e23050557
Received: 27 March 2021 / Revised: 24 April 2021 / Accepted: 29 April 2021 / Published: 30 April 2021
This study investigates the conformity to Benford’s Law of the information disclosed in financial statements. Using the first digit test of Benford’s Law, the study analyses the reliability of financial information provided by listed companies on an emerging capital market before and after the implementation of International Financial Reporting Standards (IFRS). The results of the study confirm the increase of reliability on the information disclosed in the financial statements after IFRS implementation. The study contributes to the existing literature by bringing new insights into the types of financial information that do not comply with Benford’s Law such as the amounts determined by estimates or by applying professional judgment. View Full-Text
Keywords: Benford’s Law; reliability; IFRS; financial statements; emerging capital market Benford’s Law; reliability; IFRS; financial statements; emerging capital market
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MDPI and ACS Style

Jianu, I.; Jianu, I. Reliability of Financial Information from the Perspective of Benford’s Law. Entropy 2021, 23, 557. https://doi.org/10.3390/e23050557

AMA Style

Jianu I, Jianu I. Reliability of Financial Information from the Perspective of Benford’s Law. Entropy. 2021; 23(5):557. https://doi.org/10.3390/e23050557

Chicago/Turabian Style

Jianu, Ionel, and Iulia Jianu. 2021. "Reliability of Financial Information from the Perspective of Benford’s Law" Entropy 23, no. 5: 557. https://doi.org/10.3390/e23050557

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