Research On Detecting Of Accounting Fraud Of Listed Companies In China

Accounting fraud of listed companies always exists since the securities market has shown up, and brings enormous harm to the socio-economy. The outbreak of Enron hit the topmost point in Bankruptcy records of listed companies in the United States, and made the world people shocked; the following case of WorldCom fraud once again refreshed the record by the total bankruptcy asset of more than 100 billion U.S. dollars. And domestic accounting fraud cases also continued to appear. Accounting fraud of listed companies had a serious impact on social and economic development, and caused a significant loss for investors, it has become a major malignant tumor of the capital market.Although the Government has taken a series of measures to strengthen the governance of listed companies, but this has not effectively curb accounting fraud, but has become worse. Therefore, the study of accounting fraud and making appropriate measures have important theoretical and practical significance, on the one hand, it can provide theoretical reference for China's relevant agencies to formulate policies to prevent accounting fraud, on the other hand, it can reduce investors'risks and costs, and protect investors'interests. The thesis draws lessons from economics, management, accounting, statistics, ethics, and other multi-disciplinary knowledge, explores the theoretical sources of accounting fraud from the points of contract theory, the theory of limited rationality , principal-agent theory, the theory of property rights, game theory, combines the theories with the actual situation of accounting fraud of listed companies in China, uses the research strategy of theory with practice, integration of standardized analysis and empirical analysis, mainly to empirical analysis, supplemented by the norms, tries to put an effective easy quantitative model to identify the accounting fraud, hopes to help the monitoring sector on governing accounting fraud of listed companies. The main indicator variables relate to financial position, profitability, earnings quality, operational capacity, quality of assets, cash flow capacity, the basic of development and capability of development, the level of risk, affiliated transactions, corporate governance, financial disclosure reports and so on. Finally, the author gets the accounting fraud identification model which have lower cost and better identification effect, including four significant variables which are gross margin of the main business, margin of total assets, undistributed profits per share and the ratio of other receivables to total assets . According to the constructed model, the three variables which are gross margin of the main business, undistributed profits per share and the ratio of other receivables to total assets have significant positive correlation with accounting fraud, but the variable of the margin of total assets has negative correlation.