Document Type

Article

Publication Date

2012

Abstract

The global nature of investing requires a thorough analysis of the firm to determine the strategic viability of the firm for investment purposes. In addition, businesses are being held more accountable for the statements they make and the actions they take concerning their business. Several forensic disciplines have recently emerged that may supply subjective and objective data that can assist investors in making their final investment decisions and determining if ongoing businesses are truly doing what is in the best interest of their shareholders. Another factor influencing the increase forensic analyses of national and multinational corporations is the increase in criminal activity within these corporations. Laws have recently been passed to better protect the individual and corporate investor, but other precautions such as a more thorough pre-investment analysis may be necessary. In the past, forensic methodologies have been used to reveal criminal activities after they have occurred. These same methods may be able to provide investment firms with knowledge regarding possible criminal activities before they occur and, just as importantly, before the individual or firm invests in the questionable organization. Because of the relative newness of forensic methodologies in business, it would be valuable to have a model that illustrates the tools used in these relatively new fields of study. This paper will discuss the emerging fields of forensic accounting, forensic economics, forensic finance, forensic marketing, forensic psychology, and other concepts, and their relationships in analyzing business cases.

Comments

The copy of record is available from IABE, the International Academy of Business and Economics at http://www.iabe.org/domains/IABE-DOI/Journal.aspx?P=6. Copyright © 2012 IABE. Reprinted with permission. All rights reserved.