Journal of Information Systems Engineering and Management (JISEM) - 2025 :Fraudulent Financial Reporting and Earnings Management in Shariah Compliant Companies

Muda, Razali and Jamaludin, Azahari and Hamdan, Hamdino (2025) Journal of Information Systems Engineering and Management (JISEM) - 2025 :Fraudulent Financial Reporting and Earnings Management in Shariah Compliant Companies. Journal of Information Systems Engineering and Management (JISEM), 10 (16s). pp. 701-712. ISSN 2468-4376

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Abstract

This study examines the impact of pressure, opportunity, and rationalisation on the likelihood of fraudulent financial reporting and earnings management among Shariah-compliant public listed companies in Malaysia. Guided by the Fraud Triangle Theory, the research employs the Beneish M-Score model to detect fraudulent financial reporting and the Modified Jones Model to identify earnings management. Data are obtained from Bursa Malaysia and the Securities Commission, focusing on companies involved in fraud and earnings management between 2014 and 2023. The study investigates eight proxies representing pressure, opportunity, and rationalisation, and expects these factors to significantly influence fraud and earnings management. The findings contribute to fraud detection literature, support regulators in strengthening monitoring mechanisms, and assist investors in making informed decisions while validating the applicability of the Beneish M-Score and Modified Jones models in Malaysia's Shariah-compliant market.

Item Type:	Article
Uncontrolled Keywords:	Beneish M-Score; Earnings Management; Fraud; Fraudulent Financial Reporting; Modified Jones Model; Shariah Compliant Companies; Fraud Triangle Theory; Malaysia
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Institute of Graduate Studies (IGS)
Depositing User:	LIBRARY2 UPTM
Date Deposited:	30 Jul 2026 04:55
Last Modified:	30 Jul 2026 04:55
URI:	http://eprints.uptm.edu.my/id/eprint/5926

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