An Empirical Study On Detecting Financial Fraud Of Listed Companies In China

Listed company as a leader in its industry, it leads the development of the industry's latest developments and trends. On the one hand, listed companies make a positive contribution to the national economic development, while on the other hand, listed companies exist financial fraud in the world. It has brought serious negative impact to the stock market development. Improve the interpretation and identification ability on the financial statements of listed companies, which will reduce the degree of asymmetric information to a certain extent, and thereby enhance the investment decisions and improve the accuracy of investment. At the same time, improve the efficiency of government supervision. But how to identify the authenticity of accounting information is an urgent need to address the problem. China's stock market as an emerging and transitional market, in the effective promotion of macro-economic sustainable, healthy and steady development, but there are fraud issues listed companies, which seriously damages the listed company's market image, eroding the integrity of the market based on infringement of the interests of investors. How simple and efficient to identify the existence of listed companies in financial fraud has become an urgent and practical research topic.Listed companies exist financial fraud objectively, which is a listed company itself, government, investors and intermediaries such as multi-stakeholder game results. With the stock market to promote the role of the real economy growing, the main body of listed companies as the market, the information disclosed by the parties more concerned about economic subjects. Economic activities dependence on the accounting information increases, the quality of accounting information that people have become increasingly demanding. Financial fraud is a reality, financial fraud result in disclosure of information distortion, seriously affecting the information users and the decision-making judgments. Only by constantly improving the ability of identify accounting information can reduce errors in the decision-making. If we can offer an effective, simple existence of listed companies determine the tools of financial fraud, whether theoretical or practical level, are of great significance.This paper makes theoretical analysis and empirical research, firstly qualitative description of the listed company's financial fraud theory, motivation, symptoms, and means, then do empirical research, through the establishment of an econometric model of the dual discrimination, the final choice Probit model to determine the existence of listed companies financial fraud, to determine whether listed companies to provide reference for financial fraud. The paper concludes with some policy recommendations.