The Corporation Governance Features Of Fraud Firms

With the growing development of capital market in China, the accounting information thatthe listed companies disclosed has increasingly become an important source of information fordecision-making and judgment of investors, therefore the investors pay close attention to thequality of disclosed information. At the same time, more and more laws, regulations andcontracts directly or indirectly depend on accounting data as a basis for evaluation; theimportance of accounting information is becoming more and more prominent.When the accounting information becomes more and more important, the fi-audulentevents of accounting also repeatedly to occur in our country capital market, the false accountinginformation has seriously hurt the general investors' benefit, and destroyed the healthdevelopment of the capital market. Supervising and managing department, investor, creditorand other benefit correlations have already taken much attention to the serious fraud.Overseas regarding the research of fraud was already extreme widespread, also obtainedthe very great achievement. However, the research about it in domestic also limited, mainlyinvolves motive, origin, prevention and other aspects of fraud, which are fundamental theoreticresearch, using the empirical analysis research is still not too much, and very few peoplestand in the corporate governance and highly regard the question of fraud.While the corporate governance as an extremely widespread category, each aspect of itsintegrant may affect the accounting information, the people also more and more realize theimportance of corporate governance, especially in guaranteeing the fair of accounting reportand discovering fraud practices. We believed that when a listed company has a strong sense offraudulent motives, some imperfect corporate governance structure of listed companiesprovided an opportunity, and has become the most deep-seated reason of fraud.But so far, not related research indicates that China's fraud firms what kind of companymanagement features and for instituting appropriate fraud audit strategy, auditors should how toconsider corporate governance factors. This article from the angle of corporate governance,according to the purpose of the empirical analysis research, the request of designing andselection of the samples, and also select a group of non-fraud firms as matching samples ,whichwas used for comparison; Except that, using logistic regression model to analysis the corporategovernance features, in order to distinguish the non-fraud firms and fraud firms, by improvingits corporate governance to eradicate fraud, which provides a basis for auditors to discover fraud in the process of auditing, about how to consider the related factors of corporategovernance.The empirical analysis results indicated that fraud firms compared to the non-fraud whoseshares have higher concentration, the higher proportion of shares in circulation, the board ofdirectors and the board of supervisors always hold meeting, the number of times is more, andare also more prone to change board chairman. While in the state-stock proportion, the lawannual bonus proportion, the board of directors population, the board of supervisors populationand the independent directors proportion do not have remarkable difference, explained thatcompany governs still has many flaws in our country and has not been able to effectivelyprevent, discover and correct fraud.