Detecting Financial Statement Manipulation in Selected Indian Telecom Companies Using Beneish M-Score Model

ABSTRACT : The Indian telecom sector, with 1.17 billion users and the second-largest market globally, is experiencing exponential growth due to factors like affordable prices, accessibility, and government initiatives. The introduction of 5G technology has accelerated this growth, with projections of 920 million mobile users by 2025 and an economic boost of $450 billion between 2023 and 2040. Financial statement manipulation poses a significant challenge in the realm of corporate finance, potentially misleading investors and stakeholders. This study delves into the intricate domain of financial statement analysis, focusing on five Indian telecom companies, a sector pivotal to the nation’s economic growth with a period of five years from 2018 to 2022. Employing the renowned Beneish M-Score Model, this research endeavors to detect instances of financial statement manipulation within the chosen telecom entities. This paper also explores a quantitative analysis using the Beneish M-score model was used to investigate earnings manipulation within Indian telecom firms. The study highlights the complexities of financial statement fraud in the telecom sector and the need for vigilance for sustainable growth and investor confidence.
KEYWORDS: Financial Statement Manipulation, Beneish M-Score Model, Indian Telecom Companies,
Financial Fraud Detection, Earnings Manipulation, Not Earnings Manipulation.