Research On The Motivation And Governance Of Accounting Fraud In China 's Listed Companies

It is known that the capital market is tainted by accounting fraud with the development of it. In overseas, after Enron’s financial accounting scandal was exposure, scandals about the world famous companies such as the World Communication Company and Xerox making accounting fraud are exposed. Seeing from the circumstance in our country, the events of accounting fraud are repeatedly arising. For example, cases of Zheng Baiwen, Liming Stock and Houwang Stock were exposed in2000, case of Maikete was exposed in2001and the accounting fraud of Yin Guangxia. With the exposure of financial scandals in companies such as Yin Guangxia and Lantian, a series of accounting fraud cases were revealed in Chinese security market. For example, financial fraud cases were founded in Yunnan Lv Dadi and Wanfu shengke. The most serious cheating cases shocked Chinese security market with making bad influences. Without stopping the financial fraud problems, it will not only influent the healthy and sustainable development of Chinese security industry, but also causing a credibility gap between Chinese financial industry and related industries at home and abroad. Those cases make investors suffer huge loses, and do serious harm to rational resource allocation and the development of security market. Therefore, it is very important to study accounting fraud of the listed companies.Researches about the accounting fraud are abundant in foreign accounting profession, which help Chinese accounting profession to study on the accounting fraud. However, taking into account Chinese laws and economic situations, researches on Chinese accounting fraud have to combine with the actual situation. This article combines the theoretical study with cases analysis. Specifically, it will analyze the accounting fraud problems among Chinese listed companies with using the theory of risk factors of accounting fraud. Besides, it will include the analysis of motive, methods, strategies and researches of Nanfang Stock Corporation.This paper includes sevent parts. The first part is introduction, which introduces the background, domestic, literature review, main problems, appropriate research methods and strategies.The second part points the basic theory of accounting fraud, including the definitions and motive of accounting fraud. The third part will select all the punishment information of Shanghai Stock Exchange and Shenzhen Stock Exchange from2011to2013. In addition, it will make a conclusion of the most common means for listed companies to make accounting fraud. Then it will analyze the dangers of accounting fraud. The forth part will analyze the motivation of accounting fraud from the perspective of risk factors theory.Part five will list strategies of managing accounting fraud. The sixth part will give a detailed introduction of the Nanfang Stock Cooperation case. Besides, it will analyze the cheating methods, motive of Nanfang Stock Cooperation. In addition, it will conclude what enlightenments Nanfang case leaves to listed companies. Part seven is conclusion.