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Benford's law first significant digit and distribution distances for testing the reliability of financial reports in developing countries

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journal contribution
posted on 17.01.2018, 09:52 by Jing Shi, Marcel Ausloos, Tingting Zhu
We discuss a common suspicion about reported financial data, in 10 industrial sectors of the 6 so called “main developing countries” over the time interval [2000–2014]. These data are examined through Benford's law first significant digit and through distribution distances tests. It is shown that several visually anomalous data have to be a priori removed. Thereafter, the distributions much better follow the first digit significant law, indicating the usefulness of a Benford's law test from the research starting line. The same holds true for distance tests. A few outliers are pointed out.

History

Citation

Physica A: Statistical Mechanics and its Applications, 2018, 492, pp. 878-888

Author affiliation

/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/School of Business

Version

AM (Accepted Manuscript)

Published in

Physica A: Statistical Mechanics and its Applications

Publisher

Elsevier for North-Holland

issn

0378-4371

Acceptance date

12/11/2017

Copyright date

2017

Available date

24/11/2018

Publisher version

http://www.sciencedirect.com/science/article/pii/S0378437117310890?via=ihub

Notes

The file associated with this record is under embargo until 12 months after publication, in accordance with the publisher's self-archiving policy. The full text may be available through the publisher links provided above.

Language

en

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