The Research On Influencing Factors Of Financial Report Fraud

China has been hit by a rising number of scandals of fraudulent financial reporting inthe securities marke. From the initial three frauds of Shen Zhen Savage Land, The GreatWall electrical and mechanical, Hainan Xinhua, to the following Joan MinYuan, Dahlmannand Abandonment, and to the latest Sichuan changhong financial door, Changyu’s sixannual accounts and Lanzhou sanmao industrial, financial statement fraud has grown into atumor in the development of market economy, threating the normal operation anddevelopment of capital market. The research of financial statement fraud problem hasbecome an important and urgent task.Therefore, this paper mainly adopts the method of normative study and empiricalanalysis,choosing tentatively traditional economics, behavioral economics, informationeconomics and economics of property rights as theoretical basis,adopting the deductivemethod, theory analyzing financial statement fraud in several different ways includingneed for fraud, accounting environment and choice for fraud, which provides a new train ofthought for the study of enterprise financial statements fraud management. This articleselected from1999to2010by the CSRC, the Shenzhen stock exchange, Shanghai publicto punish72a-share listed companies as research samples for fraud, the fraud and fraudenvironment two factors for empirical testing. At last, the paper make recommendations.This paper studies the following deficiencies:(1) the number of samples is not bigenough;(2) due to fraud exposure lag, cannot guarantee control samples in the selectedtime period must be without the implementation of fraud;(3) for fraud or continuous fraudcompany for many times, only select first implement fraud fraud company annual that yearas a fraud, may miss the classic big samples for fraud.(4) for the selection of indicators inthe model is based on the theoretical analysis, without empirical test.