A Study On Means And Cause Of Financial Fraud In Chinese Listed Companies

Financial fraud of listed companies has always been a focus of public concerns. With the continuous development of Chinese securities market, as well as a growing number of investing agencies and investors participating in it, financial fraud will be increasingly dangerous, and may gradually develop into a severe problem which hampers the confidence of small and medium sized investors and obstructs the healthy development of securities market. This article introduced classical theories on fraud as as well as domestic and foreign present studies on means and roots of listed company’s financial fraud. Then it statistically analyzed important information of 83 listed companies punished of fraud by China Securities Regulatory Commission between 2001 to 2010, including their business coverage, time of being listed and fraud, means of fraud, whether having carried out special process, whether having finished reform, its prospectus and listing notice, annual reports, mid-year report, interim announcements, etc. In the end, this article offered conclusions on means and reasons of financial fraud of listed companies. Giving its comprehensive analysis on characteristics of fraud companies, those conclusions may throw some humble light to relevant investors and Insiders.