Study On Identification Of Fraudulent Financial Statements Of Listed Companies

With the economy growing, competitive market economy are becoming more intense, a lot of companies out of external pressures or their own interests, ignoring the laws and regulations, financial fraud through a variety of means to enable companies obtain improper benefits or illegal purposes. Recently, China’s economic market, listed companies ’financial fraud phenomenon intensified, so listed companies’ financial fraud has also become the focus of attention of many scholars. With the development of time, along with the financial fraud and changing. Means of financial fraud before relatively simple, easier to identify, and now a listed company fraud means more subtle, it becomes increasingly difficult to identify. Financial fraud issues to the majority of investors a great deal of distress, but also challenging the relevant regulatory bodies. Financial Fraud harm is enormous, it is well known, and therefore strengthen the company’s financial supervision and management of the market in a timely manner and quickly identify financial fraud, and preventive measures and treatment measures to solve the problem, which for the maintenance of the company’s market listing ordered normative order is significant.In this paper, the characteristics of the Chinese market for listed companies to undertake a study of financial fraud. In the course of the study to proceed from the financial statements, the financial statements of the first to define the behavior of fraud, and the conduct and reporting of financial fraud and confusingly similar conduct analysis and distinction. Combined with previous studies after moving fraud motivation theory of financial statements of listed companies due to the occurrence of corrupt conduct summarized. Summary financial statements of listed companies commonly used means of fraud, and for further empirical research on the financial statements of listed companies in China to lay the foundation of fraud from the assets, liabilities, income and other aspects of the analysis. In the empirical part of this study, selected listed companies in China 2005-2014 decade by China Securities Regulatory Commission publicly punished 30 companies as a sample, and then select 30 samples with fraud in the same sub-sectors of the same size as a comparison of listed companies samples. Based on the foregoing analysis theory, selected financial indicators from eight aspects of profitability, financial condition and other indicators of the financial statements as recognition for research fraud. Construction of logistic models based on sample data and indicators previously selected, whether the occurrence of corrupt conduct by the company as the dependent variable, asset-liability ratio, accounts receivable turnover ratio and other financial indicators as the independent variable regression analysis, financial statements, and various financial fraud the relationship between indicators and draw recognition model. Studies have shown that asset-liability ratio, accounts receivable turnover, inventory turnover and total asset turnover and other indicators related to the financial statements of a larger corrupt practices, corrupt practices can be identified. Recognition model established in this paper on financial fraud comprehensive recognition accuracy rate of 78.4%. Finally, based on the empirical analysis of the conclusions and proposes some countermeasures and suggestions for the financial statements of listed companies in fraud, with a view to the listed companies on China’s current financial fraud identification and management for reference.