Comparing The Motivation And Opportunities Of Providing Fraudulent Financial Statement Of Public Traded Companies Between The United States And China

Capital market is more developed, the accounting information is more important. However, accountant fraud occurs repeatedly since 1990s in Chinese capital market, which has seriously damaged general investors'benefit, destroyed the health base of capital market. At the Same time, a great deal of accounting fraud events had occurred in the capital market of USA.However, pouring accounting fraud accidents in the capital market of USA had been controlled in the short-term by enforcing a series of urgent measure. But Chinese capital market have deluged with the illusive information for many years. Then, what causes the gigantic difference of harnessing the fraudulent information practices between USA and China? Our analysis will take the mechanism of conduct as the cut-in point in the essay, carries on the thorough analysis to difference to the time to discover the concrete reason, and provides the new thought and the measure.We believed that, it is only the character of decision-makers,behavior that can explain the formal mechanism of fraudulent financial report. Basing on Albrechts,triangle theory, analyzing form the perspective of TMT,we construct a incentive model in which enumerates the main factors influencing the motivation of managers to actualize accounting fraud.According to the model, we analyze seriatim the difference of every factor between Chinese and American and searching for its fundation. We use various statistical methods such as descriptive statistics; independent sample T examination, the paired-sample T examination and the logistic regression in the fourth chapter to investigate the opportunitiesof fraudulent practice in Chinese stock market.we compare the American homologous situation as the positive conclusionThe resuslt indicated that, as the discrepancy of market configuration, the institutional factor and efficiency of supervising practice of government, the reputational mechanism play an important role in the decision-making of providing fraudulent financial statemant for the real controller of American companies, nevertheless, in chinese capital market, its effect isn,t notable. On the other hand, American companies are more likely to have an effective invigorative system, but it is defective in most listed company, which result in manager's egregiouse economic preference. At the end, American companies many pay out more expense for their fraudulent behaviors, including civil compensation and criminal responsibility than the cost in Chinese cases, which is mainly administrative punishment.