The Correlation Study Between The Characteristic Of Senior Management Team And The Financial Reporting Fraud Of Listed Company

Financial reporting fraud is a hot topic now, and it is also an important research subject of accounting and corporate governance. As a special group, the senior management team of listed companies has been the "leading role" of financial reporting fraud. By analysis the fraud case from the securities and futures commission, the Shanghai stock exchange, the Shenzhen stock exchange and the ministry of finance, it can be found that, the results of the financial reporting fraud of listed companies are basically from the senior management team’s directly decision or promotion.On the basis of the theory of "high ladder", a large number of studies suggest that the different background and characteristics of the senior management team can reflect their executive experience, cognitive level and risk appetite, which directly affect the enterprise’s strategic choice, behavior decision-making and management performance,etc. Therefore, the perspective study of the senior management team’s characteristics, and it’s relationship with financial reporting fraud not only has certain innovative on the theoretical study, but also can provide certain enlightenment meaning for the perfection of the enterprise’s executive team’s construction and the audit’s concerns, in reality.This article based on the carding basis of the characteristics of existing senior management team and financial reporting fraud’s research, with "high order theory" and "agency theory" as the theoretical basis for the full, and through the empirical study it finally comes with some reasonable and effective suggestions. In the empirical research part, this article choose the financial reporting fraud’s cases of listed companies from2006to2012, and select the proportion of1:1paired samples accordingly. This article build two Logistic regression model by homogeneity and heterogeneity index, and the different dimensions of the relations between them makes the conclusions of the article much more convincing.The results show that, the proportion of female executives, the political background of the senior management team, the professional background of senior management team, the working time, the senior management team’s stake, the gender heterogeneity of the executive team, the professional background heterogeneity of the senior management team, and the heterogeneity of the senior management team member’s payment will influence the occurrence of financial reporting fraud of listed company in different extent. Through the empirical research this paper summarized by two aspects of the construction of the listed company’s senior management team and the audit’s concerns, respectively, puts forward the corresponding revelations.