A Theoretical And Empirical Research On Fraudulent Financial Report

Since 1990s, financial fraudulent behaviors in economics field are rampant not only in scale but also in complexity, and have become increasingly internationalized. For example, the bankruptcy of ENRON, which was once the largest energy company in the world, led to the loss as high as 70 to 80 billion dollars to the U.S.A. As a result, Arthur Andersen accounting firm had to depart from accountant industry. The bankruptcy of the company led by Arthur Andersen's accounting scandal is bringing a series of profound reflection about the corporate governance and the spurious problem of accounting and audit all over the world.Compare to America and Britain, financial fraudulent behaviors of the Chinese enterprises have been more serious. It's statistically reported that 45 listed companies had been punished for fraudulent behaviors in financial reports from the establishment of China security market to October 2005. Fraudulent financial reports of listed companies lead to ineffective use of capital make the waste of social resource distribution and do harm to the real interest of investors. What's worse, it shocks the confidence of investors and the credibility for security market, which is an important foundation stone of the security market development and relates to whether the security market develops healthily and orderly. Obviously, the problems of fraudulent financial report in our listed companies, especially a series of fraudulent financial reports created by so-called blue chip such as Yin Guangxia in 2001, led to the unprecedented credit crisis in the Chinese security market and largely affected the basic function of security market to optimize resource distribution.Based on the domestic and foreign research achievements of fraudulent financial report, Chapter 2 of this dissertation analyses the formation principle of fraudulent financial report. It analyses intrinsic factors and exterior environments of the financial fraudulent behavior by the theory of limited rational economic man. In the analysis of intrinsic factor about the formation of fraudulent financial report, this dissertation analyses the property right of accounting information which is the first factor of fraudulent financial report, which means in the case of lacking the property right of accounting information, the supply of accounting information may encounter the "supply deficiency" or "information overload". The reason is that the management...