The Research On Identifying Fraudulent Accounting Information Of Listed Company Based On Corporate Governance Characteristics

The fraudulent accounting information of China's listed companies have seriously affected the healthy development of the stock market. It's become a problem with great concern that how to identify the fraudulent accounting information of China's listed companies with a simple and easy method for the securities regulatory departments, the majority of investors, certified public accountants, and other stakeholders. From the supply chain of accounting information, the financial reports were completed by accountings under the control of authorities, and then reviewed by board of directors, board of supervisors, accounting firms, finally revealed to the public. If the corporate governance was taken into account the supply chain of accounting information, we can find that the accounting information which meets certain quality is closely related to the management, board of directors, board of supervisors and external audit's role and responsibility. So, we think the corporate governance deficiencies of listed companies are the main causes to lead to fraudulent accounting information and also the research and management for fraudulent accounting information should start from the mechanism of corporate governance.On the basis of the related research results of fraudulent accounting information from domestic and foreign, I have chosen 87 listed companies which have been punished by Securities Regulatory Commission, the Ministry of Finance and the Stock Exchange for false and seriously misleading statements and material omissions in the annual report between 2002-2006 as our research samples, and analyze the fraudulent accounting information from the financial situation characteristics and the corporate governance characteristics such as equity structure, board of directors, board of supervisors, senior management and external auditing. And I have used the Logistic regression methods to establish a model to identify the fraudulent accounting information.The results show that there were some significant differences in the indicators of corporate governance and financial indicators between the companies with fraudulent accounting information and the companies with true accounting information. For overall samples, the identification rate of the model based on the corporate governance characteristics is 78.5 percent. It has a better ability to identify compared with other studies, can help investors and creditors, government regulators, the audit department to correctly identify the fraudulent accounting information of listed companies.