The Research On The Financial Statements Fraud In Chinese Listed Companies

The collapse of Gas giant Enron Corporation shocked the whole world, financial fraudproblem should not be ignored any all. Since our stock market has been established, thefinancial fraud problem of listed companies has been along with the development of thesecurities market. The fraud has become a problem that would hinder the economydevelopment of our country.First, this paper introduces the basic theory of the financial report fraud, and elaborate itfrom itself concept and the related conception. At the same time, this paper takes the112companies as the research object which were administratively penalized by CSRC(ChinaSecurities Regulatory Commission) from2000to2010. And this paper analyses the presentsituation of our country’s financial report fraud and the damage caused by it. Secondly, thispaper introduces the four major fraud motivation theories of listed companies: The Theory ofFraud Iceberg, Fraud Triangle, GONE and Fraud Risk Factors. On this basis, we focus on theproblems of fraud which our country faces at the present from the point of the Theory ofFraud Triangle. At the same time, we analyze the methods of the financial report fraud oflisted companies in China. The methods include fabricating economic business, concealing ornot to disclosing important events, using the accounting policy to fraud. Again, this paperchooses annual reports of52companies which are from112fraud companies to be the studysample, and we fix the control sample. Then, we put forward13variables which may berelated to the financial report fraud and13assumptions. This paper uses Logistic regressionmodel to analyze the variables which may be related to the financial report fraud, and testthese variables on the recognition efficiency of the fraud. Finally, this paper puts forward thetreatment measures of the fraud form four terms: perfect the corporate governance structure,perfect accounting information, establish the external supervision mechanism and strengthenthe honesty culture construction. At last, we put forward some prevention measures...