The ECB research paper notes a RuntimeException caused by a mismatch in deserializing a JSON object as a string. It also includes a bibliography that summarizes key studies on earnings management, corporate debt pricing, and forensic accounting. The cited themes cover managerial incentives to avoid earnings surprises, auditor influence on earnings manipulation, cash holdings and earnings fraud, equity incentives, failing firms, credit valuation models, and statistical techniques for detecting manipulation, alongside foundational works on valuation and statistical distributions. Annex 1 defines the Beneish M‑Score, describing seven ratios—DSRI, GMI, AQI, SGI, DEPI, SGAI, TATA, LVGI—that assess revenue recognition, margin changes, asset quality, sales growth, depreciation, expense growth, accrual quality, and leverage. High DSRI or AQI values indicate aggressive revenue recognition or asset overvaluation, while low DEPI, rapid SGAI growth, or high leverage with poor profitability may signal earnings manipulation. Annex 2 provides the mathematical formulas for the eight M‑Score variables. Acknowledgements thank Alessandro Santoni, Nicolas Dierick, and Lamia Allali. The paper is © European Central Bank, 2026, and can be downloaded from the ECB website; reproduction requires explicit written authorization.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
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