Logistic regression model of fraud detection in financial statements. Logistic regression was used in creation of fraud. Classification model. During first stage the following, was included in the model financial ratios that show statistically. Significant differences in fraudulent and non-fraudulent financial statements. It was determined that multicollinearity. Problem exists in such models. Therefore these models, cannot be used and they have to be improved. During the second stage. Of research the forward, method, was applied as initially the constants are determined and later independent variables are. Gradually included into, the models i.e, financial statements with a strong correlation relationship to the dependent, variable. The development of model is presented in Table 2.
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