Identification Of The Features Of China's Listed Companies' Financial Fraud

The Securities Market is a most important way of collocating resources. And financial frauds are a significant factor which will affect the inventor decisions. Since the opening of the Securities Market, we observe a frequent break out of the financial frauds. Many famous listed companies also arise financial frauds, which brings great effects to the Capital Market. Not only influence the health of China's listed companies, destroy the mechanism of Securities Market, but also bring the unprecedented credit to the whole Capital Market and Accounting. Furthermore, the financial frauds have affected the small&medium-sized investors for a long time.The author use opening information of the listed companies, combining the listed company cases to acquire four-layer method which can identify the fraudulent financial, and make Logistic regression model which is also helpful, with the aim of protecting the investors' interests.First, the paper summarizes the backdrop, purpose, means and the structure of the research.Then tries to find the theoretics basic and the reference of research by analyzing the fraud theoretics and retrospect to fraudulent financial characteristic theoretics accomplishments.Second, it introduces a systemic way to recognize the characteristic which means the fraudulent financial may exist.The paper begins with fraud theoretics and result of Professor Albrecht's researches, as well as SASNo.99 romulgated by AICPA.The talked means contains four parts, such as relation part, industry part, organization & managemen part, operation & financial results part. It's a way according to the listed companies cases occurred in China.Third, a case was used to check that investors were able to recognize the financial frauds and reduce investment risk caused by frauds, using the way discussed above.Fourth, it focued on how to identify the financial frauds by statistical ways.The process of the logistic regression model used to recognize the financial frauds was introduced in detail. Select financial frauds samples and non-financial frauds samples by established standards. Then choose the index which passed the Paired-Samples T Test and 2 Related samples Nonparameter Test. After that, do correlation analysis and factor analysis. By the end, use the final factors to establish the regression model.Finally, with the hope of more inspirations to investors, especially the Small & medium-sized inventors, it summarized the research aboved and prospected the further study of the fraudulent financial subjuect.