Empirical Research On The Financial Fraud-detecting Of Chinese Listed Companies

With the development of economic globalization, more and more firms tend to finance from the whole society to take advantage of a wider range of resources to spread production. Then there is coming out more and more phenomenon that companies come into the market from abroad to in the homeland. Most enterprises want to seek better development by financing from the market, but there are also some companies have some bad thoughts of getting money from the market to obtain more illegal interest. To prevent such negative phenomena and regulate the acts of companis, the relevant department of the whole world all set down prescript to the process and qualification of coming market. At the same time, there are also some strict requirements about publishing information of management, finance and others. The purpose is to protect the interests of investors.Though the law for companis has more comprehensive, there are also some companis take risks to get interests. These companies use different financial fraud means and publish the fake information to get illegal interests. The fake information not only makes the information users have a wrong decision, but also invades the interests of investors. And then it also impacts the normal economy. As our country has been in the elementary stage of economy and the stock market has not been perfect, the phenomenon of financial fraud is more serious. In this situation, it is necessary to find a effective method to judge the information published by company. Then it will help the investor make the right decision and recognize the development trend of company. As a result, This paper will discuss the financial fraud problem using normative research and empirical Study. After the discussion, This paper not only want to find a effective method to help investors, managers and society recognize the target company objectively and truly, but also want to form a strong power to force company focus the normal development and provide real information for society to reduce the financial fraud.This paper can be divided into four parts:Firstly, it introduces the research background of this thesis, literature summary, this paper's main content and research technique.Secondly, it is about the basic conception of financial fraud, theory of financial fraud reason and the method of recognizing financial fraud.Thirdly, it is the key part of the whole article, and there are some new views and ideas. The financial fraud companies from 2005 to 2009 are the research objects, the financial index and the company administration index are the research variable, the Descriptive statistical analysis, Significant difference test, Factor Analysis and logistic Regression are research methods. And then, the financial fraud-detecting model is built.The logistic model is:logit(p)=In(p/1-p)=α+β1X1+β2X2+β3X3+β4X4=α+ΣβiXiThe financial fraud probability is:Y=p=exp(α+ΣβiXi)/1+exp(α+ΣβiXi)Last, it points out the research result at the base of front theory and analysis, and provides some suggestions to reduce financial froud from four aspects. Then it concludes the research significance and disadvantages.