Financial Distress and Earnings Manipulation in Indian Listed Firms: An Empirical Study Using Beneish M-Score and Altman Z-Score

Bharath Raj M

earnings manipulation; financial distress; Beneish M-Score; Altman Z-Score; Indian listed companies; financial fraud detection.

This study examines financial distress and earnings manipulation among selected non-financial companies listed on the National Stock Exchange (NSE) during the period 2020–2025. The analysis is conducted using the Altman Z-Score model to assess financial stability and the Beneish M-Score model to detect potential earnings manipulation. The sample consists of ten large-cap companies selected based on consistent market presence and availability of financial data. The results indicate that most companies, particularly in the IT and FMCG sectors, demonstrate strong financial stability and fall within the safe zone. However, companies in capital-intensive industries such as steel, telecom, and infrastructure exhibit moderate financial risk. The findings from the Beneish M-Score reveal that while the majority of firms maintain transparent financial reporting, a few companies show signs of potential earnings manipulation. The study concludes that financial strength does not necessarily ensure reporting transparency and highlights the importance of using multiple models to evaluate both financial health and earnings quality.

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"Financial Distress and Earnings Manipulation in Indian Listed Firms: An Empirical Study Using Beneish M-Score and Altman Z-Score", JETNR - JOURNAL OF EMERGING TRENDS AND NOVEL RESEARCH (www.JETNR.org), ISSN:2984-9276, Vol.4, Issue 4, page no.a489-a499, April-2026, Available :https://rjpn.org/JETNR/papers/JETNR2604060.pdf

Volume 4 Issue 4, April-2026

Pages : a489-a499

Paper Reg. ID: JETNR_233616

Published Paper Id: JETNR2604060

Downloads: 000126

Research Area: Others area

Country: Chennai, Tamil Nadu, India

Published Paper PDF: https://rjpn.org/JETNR/papers/JETNR2604060

Published Paper URL: https://rjpn.org/JETNR/viewpaperforall?paper=JETNR2604060

DOI: https://doi.org/10.56975/jetnr.v4i4.233616

ISSN: 2984-9276 | IMPACT FACTOR: 9.87 Calculated By Google Scholar | ESTD YEAR: 2023

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.87 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: RJPN (IJPublication) Janvi Wave

This work is licensed under a Creative Commons Attribution 4.0 International License and The Open Definition