Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

Table 1 
Descriptive Statistics for the variables 
Variable 
N 
Mean 
Standard 
Deviation 
Minimum 
Maximum 
Marcapta 589 1.13 1.08 
0 
11.38 
CFTA 589 .08 .19 -1.90 .37 
Beneish10 589 
.17 
.13 
-4.52 
.99 
Beneish8 589 
.06 
.19 
0 
1.00 
Marcapta is the ratio of market capitalization to total assets. 
CFTA is the ratio of cash flow to total assets. 
Beneish10 is the Beneish index using ten variables; 
Beneish8 is the Beneish index using eight variables. 
The construction of the Beneish index is explained in detail in the appendix. 
Table 2 
Correlation matrix of the variables 
Beneish8 
Beneish10 CFTA 
Marcapta -.03 
.02 
-.01 
CFTA -.06 -.50*** 
Beneish10 .49*** 
Beneish8 
Marcapta is the ratio of market capitalization to total assets. 
CFTA is the ratio of cash flow to total assets. 
Beneish10 is the Beneish index using ten variables; 
Beneish8 is the Beneish index using eight variables. 
After calculating and examining the descriptive statistics and correlations, we ran four regression models.
All of the models used the change of the ratio of market capitalization to total assets as the dependent variable. The 
first two regression models include CFTA and either of the Beneish indices. To address the size concern, we added 
the ratio of market capitalization to total assets as a control variable in the final two models. The regression results 
are shown in Table 3.