A Study Of Correlation Between Characteristics Of CFO And Financial Fraud Of Listed Companies

CFO is one of the participants or planners in a number of financial scandals, at thesame time, he is the victim. CFO play an important role in many financial fraud scandals,which cause collapse of a world’s top accounting firms—Andersen. These financial fraudscandals have had a significant impact worldwide, as a result, the accounting profession andaccounting staff mentor encounter an unprecedented credit crisis. Which features of CFOare associated with financial fraud? To solve this problem, the paper use data of A-sharelisted companies punished by China Securities Regulatory Commission official in the firsthalf2011a2013as the sample, while selecting the sample in the same industry and similarsize companies for paired samples empirical analysis. The dependent variable is whetherthe company conducted a financial fraud, and Explanatory variables are CFO gender, age,education, whether to obtain CPA qualifications, accounting titles, CFO annualcompensation, CFO holdings, CFO whether it is a member of senior executive level,whether a director, the number of part-time CFO within the company, CFO term limits.Conclusion is: age, annual returns and financial fraud have positive correlation, level ofeducation, the number of part-time CFO, CFO at the company’s existing term limitsnegatively correlated with financial fraud, CFO whether the ownership is not correlatedwith financial fraud, CFO is a senior executive level, a member of whether the directors ofthese two factors have little effect on the financial fraud. Through descriptive statistics,Logistic regression analysis and other methods for data system analysis, create a regressionmodel to test each CFO characteristic variables correlated with the listed company’sfinancial fraud.This paper is divided into five chapters. The first chapter describes the background ofthis study, meaning and purpose, innovation research methodology and framework as wellas the main article and limitations. The second chapter defines key concepts involved in thispaper introduces the relevant theoretical basis. According to the basic theory, the thirdchapter describe the characteristics of each variable of CFO and propose hypothesis of thispaper. The fourth chapter is the empirical analysis, this chapter use the company punishedby the SFC as a sample, after variable definitions for each sample company’s CFOcharacteristic variables descriptive statistics, and finally build models and use SPSS17.0software for data analysis, so that I get the study results. Based on the above conclusions,the fifth chapter proposed measures in order to improve the quality of accountinginformation.