JONES, DECHOW AND KASZNIK MODELS SIGNIFICANCE IN THE
              ROMANIAN ECONOMIC ENVIRONMENT

                    Dumitru Matiş, „Babeş-Bolyai” University of Cluj-Napoca
                 Alina Beattrice Vladu, „Babeş-Bolyai” University of Cluj-Napoca
                     Laura Negrea, „Babeş-Bolyai” University of Cluj-Napoca
                      Lucia Sucala, „Babeş-Bolyai” University Cluj-Napoca


ABSTRACT: This study intends to be a first step into an attempt of measuring the earnings
management using an econometric model valid for the Romanian specificities by trying to establish
the level of significance of three acknowledged econometric models: Jones (1991), Dechow et al.
(1995) and Kasznik (1999) on Romanian economic environment.
Given the above mentioned premises, the study was conducted using the Romanian listed
companies (active on the Bucharest Stock Exchange) selected by a main criteria: discrepancy
between reported cash flow and reported net income. Our analyses lead us to the conclusion
related to the above mentioned issues that Jones model was found to be significant for Romanian
economic environment in terms of applicability unlike Dechow and Kasznik models, thus it may be
further developed and applied to an extended database.

Key words:earnings management, manipulation, cash flow

JEL codes: M41