Impact Of Financial Information Fraudulence To Financial Distress In Malaysia.

We investigate if Malaysian listed companies engaged in financial information fraud during distressed after two years of US subprime mortgage crisis.We also the impact fraudulence bankruptcy prediction and misclassification errors. This study used consumer product on main board timeframe is from 2011 till 2015. The Altman Z score indicates that 37 out 133 are financially distressed. Meanwhile, M shows 28 224observations fraudulence. However, these results relatively low because samples taken their statements might be done lower magnitude order to avoid sanctions by Security Exchange Commission. Logistic regression was measure predicting accuracy. result overall accuracy percentage slightly improved 0.9 eliminating fraudulent companies. confusion matrix i.e. before removal companies, errors especially type one has improved. finding satisfied objective three, whereby reasons for deterioration distress due upward bias fraudulence.Governments, monitoring bodies, all those involved an insolvency process would benefit this study.