Research On The Accounting Fraud Of Listed Companies In China

Since the emergence of the stock market, public company accounting fraud abounded worldwide and has done immeasurable harm to the social and economic life. The sudden collapse of the worldwide energy giant, Enron, has set a record of bankruptcy in the whole United States since the establishment of stock market, which greatly shocked the whole world. Soon afterwards, the accounting fraud of WorldCom refreshes the record set up by Enron. At the same time, accounting fraud of listed company occurred frequently in China. Listed company's accounting fraud not only affects the corporate investors'investment decisions while decision making, but also, more seriously, it weakens the allocation function of the market resource as well as the national macro-economic control function and endangers the health of the development of entire society and economy. In this historical context, the academic researchers all over the world are trying to accelerate the pace of the research of accounting fraud in listed company. As China's capital market has become increasingly prominent in the process of building the market economy, the market requires more about the quality of the accounting information disclosed by the listed companies. Therefore, how to improve the ability of interpretation, recognition and feedback of the accounting information becomes one of the social problems to be solved.In this paper, the issues of public company accounting fraud is started to being identify by defining the concept of accounting fraud. In the first section, the definition and characteristics of the accounting fraud is summarized. In the whole passage economics, management, accounting and other theories are drawn on. This section is started with the basic assumption about the"economic person"in the economic theory. The contract theory, agency theory, property rights theory and the theory of internal control are combined to investigate the profound theoretical origin of accounting fraud. At the end of this paper, applying theory to the actual situation of listed companies in China is tried to interpret the main forms and means of the listed company's accounting fraud in China and the prevention and control measures for the listed companies accounting fraud in our country is explored.