The objective of the study is to examine the existence of earnings management within listed\ncompanies in the food and allied industry of Bangladesh. The renowned Beneish Model has\nbeen used to test whether the firms are involved in any sort of earnings manipulation or not.\nIn addition, the tendency of the companies to continuous practice of earnings manipulation\nhas been examined. The study covers a span of 5 years from 2011 to 2015 where the financial\nfigures are tested on the model to find the probability of the companies being a manipulator\nof earnings. According to Beneish model, companies with higher M-score (manipulation\nscore) are more likely to be a manipulator. The result shows that twelve out of fourteen\ncompanies have significantly higher M-score at least for one year during five-year periods. A\nfurther study reveals that a major portion of the industry has the tendency of getting into\nearnings manipulation on a continuous basis. Though the Beneish Model is a probabilistic\napproach so it is not stoutly conclusive from the test that companies are manipulating\nearnings or a continuous manipulator within the observation period.
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