Seyhan ÖZTÜRK

Cihan YILMAZ

Accounting manipulation, also referred to as artificial price or artificial market creation; financial information and financial results of the users on the financial position to influence the perception is made. In this case, investors, who are the most important financial information users, remain the most important target of manipulation. Managers aim to create an optimistic in profit expectation ”in the minds of investors through accounting manipulation. Financial hardship on the other hand; it explains the inadequacy of the cash flow of enterprises to meet their current obligations. The last stage of this concept is to be bankrupt; refers to a process that leads businesses to various negativities. Therefore, the development of models for estimating these situations which cause many negativities is of great importance since it will allow enterprises to take measures and prevent them in time. At this point, Beneish M score from accounting-based manipulation prediction models; Altman Z score from financial distress prediction models is discussed. Due to the fact that the secondary data obtained from the financial statements of the companies operating in the service sector were not suitable for the model developed by Altman, 5 companies traded in the Emerging Companies Market were not included in the analysis due to this reason and analyzed with the help of the basic financial statements of 12 companies.The aim of this study is; In the context of the 17 companies listed in the BIST Emerging Companies Market; To determine the relationship between the Altman Z-Score and the Beneish M-Score. As a result of the application made for this purpose; According to the data obtained; It was found that there was a strong relationship between financial distress and accounting manipulation.

Key Words: Manipulation, accounting manipulation, financial distress, bankruptcy, beneish m score, altman z score