An Evaluation Of The Relationship Between Financial Fraud And The Gov Ernance Of Chinese Listed Corporation

With the rapid development of Chinese economy, there emerges more and more financial fraud, the financial fraud phenomenon becomes more and more complex and subtle, which attracted the close attention of the relevant departments. As the rapid economic development in the country, the financial fraud of listing Corporation should be under more supervision and management by the relevant departments, otherwise it will directly affect China’s economic growth and social development.Theoretical analysis and preliminary study of this paper will be from the company management in the face of financial supervision and behavioral aspects of financial fraud companies. First of all, the thesis will discuss the Chinese unique ownership structure according to the management status of Chinese enterprises; then, comparison and analysis of the relationship between company management and the financial fraud. This paper will research through the proposed hypotheses for empirical study, and then summarize the relationship between financial fraud and corporate governance. The corporate governance will be researched based on governance from board of shareholders, directors, supervisors and auditing。For shareholders, this paper will focus on the action by shareholder and ownership concentration; meanwhile this paper will take whether actual controller is government into consideration. For directors, this paper will focus on the character of board and action by it; like its size, rate of independent directors, dual concern, meeting frequency and incentive for it. For supervisors, this paper will talk its character like size, holding and meeting frequency. For auditing, this paper will focus on the audit committee and external auditing; meanwhile, whether the account firm is big four will be taken into consideration.This paper will research on reference based on the Chinese listing Corporation in recent years, the financial fraud case summary, focus on the analysis of the relationship between financial fraud, corporate governance and ownership structure. With the historic research and data, this paper will do Univariate tests and regression under the help of SPSS, and conclude as below:a) Higher attendance of general shareholder meeting will have a negativeimpact on financial fraud possibility.b) The more share owned by directors and state-owned situation mayreduce the fraud possibility.c) Higher frequency meeting of directors have a positive correlation withfinancial fraud possibility.This paper suggests some on how to reduce the possibility, like increase the director share, increase the attendance of shareholder meeting and bring government into listed corporation. Meanwhile, this paper draws some concern on model and samples. At last, this paper draws a picture of future opportunities.