Accounting and Auditing Studies

Accounting and Auditing Studies

Fuzzy Inference Membrane Mapping to Evaluate Bankruptcy Legal Propositions in the Capital Market

Document Type : Original Article

Authors
Marzeyh Mazaheri 1
Leila Safdarian 2
Mahnam Molaie 3
Mohammadreza Abdoli 4
1 PhD student in accounting, Mobarakeh branch, Islamic Azad University, Isfahan, Iran
2 Assistant Professor of Accounting , Department of Accounting, Mobarakeh Branch, Islamic Azad University, Isfehan, Iran
3 Assistant Professor of Accounting, Department of Accounting, Najafabad branch, Islamic Azad University, Isfehan, Iran
4 Professor, Department of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran
10.22034/iaas.2024.216984
Abstract
Objective: One of the competitive conflicts of the capital market is the structural disruption of companies in terms of company capacity with market changes that can lead to the bankruptcy of companies. The purpose of this research is evaluation of legal functions in identifying bankruptcy of capital market companies by two-dimensional approach of hierarchical fuzzy analysis.
Methods: In terms of methodology, this research is placed in the category of developmental and mixed method. In this research, two meta-composite and Delphi analyzes were used in the qualitative part to identify the legal functions of corporate bankruptcy and two-dimensional fuzzy analysis ( ) to determine the most influential dimension identified in this field.
Results: The results in the qualitative part indicate the existence of 12 confirmed studies and the determination of 8 legal dimensions of corporate bankruptcy, which were identified during two stages of Delphi analysis to confirm the reliability of the components, one dimension was removed from the total of 8 identified dimensions and 7 dimensions were confirmed. Based on the results of the quantitative part, i.e. two-dimensional fuzzy, it was determined that the lack of importance of forensic accounting as one of the pillars of monitoring the financial performance of companies is determined as the most effective legal factor affecting the bankruptcy of companies. Conclusion: In the analysis of the obtained result, it should be stated that, in the shadow of forensic accounting, sufficient evidence and documents are collected during two stages of proceedings and judicial support in order to determine the financial processes of companies to declare financial violations and provide the necessary documents to determine the type of bankruptcy order. The lack of such a process in terms of mechanisms for evaluating and reviewing the legal functions of companies causes that legal and court mechanisms are not created in the implementation processes of companies, especially in the conditions of the country's capital market, and in this way causes the rights of the stockholders to be violated by the companies.
Keywords
Legal Functions
Firm Bankruptcy, Forensic Accounting
  1. جمالی، جلال، متقی، علی‌اصغر، محمدی، احمد. (1400). "مطالعه مقایسه‌ای الگوهای پیش‌بینی ورشکستگی و ارائه الگوی بهینه برای محیط اقتصادی ایران"، توسعه و سرمایه، 6 (2): 111-134
  2. حسینی، سیدعلی.، مرشدی، فاطمه. (1399). “ریسک ورشکستگی شرکت‎ها: مطالعه مقایسه‎ای”، تحقیقات حسابداری و حسابرسی، انجمن حسابداری ایران، 12(47): 55-72
  3. حیدری، مهدی.، زیاری، شکراله.، شایان‌نیا، سیداحمد.، رشیدی‌کمیجان، علیرضا. (1400). "پیش‌بینی ورشکستگی مالی شرکت‌های بورس اوراق بهادار با استفاده از شبکه عصبی مصنوعی و الگوریتم کرم شب‌تاب"، مهندسی مالی و مدیریت اوراق بهادار، 12(46): 691-716.
  4. دباغ، رحیم.، شیخ‌بگلو، سیما. (1399). "پیش‌بینی ورشکستگی شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران با روش‌های شبکه عصبی مصنوعی و مدل فولمر"، توسعه و سرمایه، 5(2): 153-168.
  5. سیمایی‌صراف، حسین.، امینی، وحید. (1399). "نظام حقوقی خاص ورشکستگی بانک‌ها؛ چرایی و چارچوب حقوقی"، پژوهشنامه بازرگانی، 24(94): 259-299.
  6. صادقی، محسن.، کوشکی، مصطفی. (1401). ت"حلیل حقوقی-اقتصادی معاملات قبل از صدور حکم ورشکستگی شرکت‌های تجارتی"، مجله حقوقی دادگستری، 86(117): 233-256
  7. محمدنظامی، علیرضا.، لشگری، زهرا.، ایزدی، حسین. (1400). ت"دوین الگویی برای شناسایی عوامل موثر بر ورشکستگی شرکت‌ها در ایران"، پژوهش‌های تجربی حسابداری، 11(3): 227-256.
  8. Aguiar-Díaz, I., Ruiz-Mallorquí, M, V. (2015). "Causes and resolution of bankruptcy: The efficiency of the law", The Spanish Review of Financial Economics, 13(2): 71-80. https://doi.org/10.1016/j.srfe.2015.04.001
  9. Aktan, S. (2012). "Early Warning System for Bankruptcy: Bankruptcy Prediction, Institut für Wirtschaftstheorie und Statistik (ETS)". https://doi.org/10.5445/IR/1000025642
  10. Alarifi, F. (2021). "The bankruptcy law of Saudi Arabia: policy, operation and comparison", PSU Research Review, https://doi.org/10.1108/PRR-02-2021-0011
  11. Ayadi, M.A., Lazrak, S. and Xing, D. (2019). "Bankruptcy protection duration and outcome of Canadian public firms", International Journal of Managerial Finance, 15(5): 858-888. https://doi.org/10.1108/IJMF-05-2018-0133
  12. Barbuta-Misu, N., Madaleno, M. (2020). "Assessment of Bankruptcy Risk of Large Companies: European Countries Evolution Analysis", Journal of Risk and Financial Management, 13(58): 1-28. https://doi.org/10.3390/jrfm13030058
  13. Bateni, L., Asghari, F. (2020). "Bankruptcy Prediction Using Logit and Genetic Algorithm Models: A Comparative Analysis". Computational Economics, 55(2): 335–348. https://doi.org/10.1007/s10614-016-9590-3
  14. Berkovitch, E., Israel, R., Zenderm J, F. (1998). "The Design of Bankruptcy Law: A Case for Management Bias in Bankruptcy Reorganizations", the Journal of Financial and Quantitative Analysis, 33(4): 441-464. https://doi.org/10.2307/2331127
  15. Butzbach, O. (2022). "The Elusive Nature of Shareholders’ Claims Over the Corporation, or the Strange Non-death of Shareholder Primacy", Meyer, R.E., Leixnering, S. and Veldman, J. (Ed.) The Corporation: Rethinking the Iconic Form of Business Organization (Research in the Sociology of Organizations, Vol. 78), Emerald Publishing Limited, Bingley, 31-55. https://doi.org/10.1108/S0733-558X20220000078003
  16. Cooper, E. and Uzun, H. (2019). "Corporate social responsibility and bankruptcy", Studies in Economics and Finance, 36(2): 130-153. https://doi.org/10.1108/SEF-01-2018-0013
  17. Couwenberg, O., Lubben, S. (2016). "Essential Corporate Bankruptcy Law", European Business Organization Law Review, 16(3): 39–61. https://doi.org/10.1007/s40804-015-0006-y
  18. Daurrohmah, E, W., Riza, A., Suryani, P., Urumsah, D. (2022). "Comprehensive Model of Bankruptcy and Forensic Accounting", 5(1): 24-37. https://doi.org/10.18196/jati.v5i1.12985
  19. Demetriades, P. and Owusu-Agyei, S. (2022). "Fraudulent financial reporting: an application of fraud diamond to Toshiba’s accounting scandal", Journal of Financial Crime, 29(2): 729-763. https://doi.org/10.1108/JFC-05-2021-0108
  20. Hu, Y.-C., Jiang, P., Jiang, H. and Tsai, J.-F. (2021). "Bankruptcy prediction using multivariate grey prediction models", Grey Systems: Theory and Application, 11(1): 46-62. https://doi.org/10.1108/GS-12-2019-0067
  21. Huang, X., Teng, F., Xin, Y. and Xu, L. (2022). "Bankruptcy courts and the marketization of bond issuance", China Accounting and Finance Review, https://doi.org/10.1108/CAFR-05-2022-0056
  22. Janková, Z., Dostál, P. (2021). "Type-2 Fuzzy Expert System Approach for Decision-Making of Financial Assets and Investing under Different Uncertainty", https://doi.org/10.1155/2021/3839071
  23. Jia, Zh., Shi, Y., Yam, Ch., Duygun, M. (2020). "Bankruptcy prediction with financial systemic risk", The European Journal of Finance, 26(7/8): 666-690. https://doi.org/10.1080/1351847X.2019.1656095
  24. Kamarudin, K, A., Ariff, A, M., Jaafar, A. (2020). "Investor protection, cross-listing and accounting quality", Journal of Contemporary Accounting & Economics, 16(1): 100-179. https://doi.org/10.1016/j.jcae.2019.100179
  25. Kuttner, M., Mayr, S., Mitter, C. and Duller, C. (2022). "Impact of accounting on reorganization success: empirical evidence from bankrupt SMEs", Journal of Accounting & Organizational Change, https://doi.org/10.1108/JAOC-06-2021-0080
  26. Makropoulos, A., Weir, C. and Zhang, X. (2020). "An analysis of the determinants of failure processes in UK SMEs", Journal of Small Business and Enterprise Development, 27(3): 405-426. https://doi.org/10.1108/JSBED-07-2019-0223
  27. Nagel, R. and Aviles, C. (2021). "The impact of corporate bankruptcy on strategic management: using a textual analysis approach to analyze executives’ opinions", Journal of Indian Business Research, 13(3): 382-394. https://doi.org/10.1108/JIBR-07-2020-0245
  28. Nyitrai, T. (2019). "Dynamization of bankruptcy models via indicator variables", Benchmarking: An International Journal, 26(1): 317-332. https://doi.org/10.1108/BIJ-03-2017-0052
  29. Olsen, B.C., Tamm, C. (2017). "Corporate governance changes around bankruptcy", Managerial Finance, 43(10): 1152-1169. https://doi.org/10.1108/MF-09-2015-0257
  30. Qu, Y., Quan, P., Lei, M., Shi, Y. (2019). "Review of bankruptcy prediction using machine learning and deep learning techniques", Procedia Computer Science, 162(2): 895-899. https://doi.org/10.1016/j.procs.2019.12.065
  31. Ramesh, V.K., Ramesh, R.K. and T., J. (2022). "Promoter ownership and bankruptcy reforms: evidence from India", Indian Growth and Development Review, 15(1): 98-122. https://doi.org/10.1108/IGDR-03-2021-0033
  32. Takahashi, A., Takahashi, S. (2021). "A new interval type-2 fuzzy logic system under dynamic environment: Application to financial investment", Engineering Applications of Artificial Intelligence, 100(2): 193-217. https://doi.org/10.1016/j.engappai.2021.104154
  33. Vaghfi, S. (2019). "Using artificial intelligence algorithm in Financial Bankruptcy by Macro-economic and Accounting variables in listed companies for stock exchange in Tehran". Journal of Decisions and Operations Research, 4(2): 158-173. https://doi.org/10.22105/dmor.2019.174674.1106.
Accounting and Auditing Studies
Volume 13, Issue 52
Autumn 2024
Pages 89-110