Comparative Study On Chinese And American Financial Fraud

Financial fraud is growing together with the development of capital market. It isregarded as a malignant tumor in capital market and has always been hated by theusers of listed companies’ financial information such as investors and regulators allover the world. In recent years, researchers around the world are doing a series ofin-depth study on relative subjects of financial fraud, and playing a guiding role onhow to prevent, identify and govern the behaviors of financial fraud.Chinese stock market and American stock market are regarded as two typicalcapital markets in the world. Because of the different economic system, developmentprocess of stock market and culture background between China and America, the twocountries’ stock markets are distinctive, existing big differences is various aspects.The behaviors of financial fraud are also unique in different market backgrounds.Therefore, the comparative study on Chinese and American financial fraud has certainpractical significance.This article makes comparative theoretical study on Chinese and Americanfinancial guidelines setting modes, financial statements, fraud motives and reasons,fraud forms, and analyzes the typical cases of the two countries on listed companies’financial fraud. Through comparative study on two cases, the connections anddifferences between Chinese and American’s listed companies’ financial fraudbehaviors could be analyzed more intuitive and clearly. Finally, the author comparesthe two countries’ prevention and governance on listed companies’ financial fraudfrom the aspect of internal and external audit, and proposes feasible suggestions.