Study On The Correlation Between The Characteristics Of Board Chairman、the Nature Of Property Rights And Financial Reporting Fraud

For the past few years, the financial reporting fraud occur to be a serious trouble which has done a series of hazards to the economic development. The problem of govern management was the mainly reason for this phenomenon. We found that majority of the director of financial reporting fraud are the senior executives, especially the board chairmen. The research of international related studies have indicated that the characteristics of board chairmen have an effect on the firms decision making process. So future studies are needed to explore whether the characteristics of Board chairmen have something to do with the firm’s behaviors in china. Meanwhile the phenomenon of "one central concept" occupy the main position in the listed companies, and the state-holding enterprises is still a main part in our country. Thus it is very important to investigate the relationship between the financial reporting fraud and the characteristics of Board chairmen.We firstly reviewed the domestic and international research results on the financial reporting fraud, then expounded the theoretical basis of Board chairmen and financial reporting fraud, and analysis the relationship between the financial reporting fraud and the characteristics of Board chairmen, we choose the age, time and education level of Board chairmen, after that we use 2007-2013 Shenzhen and Shanghai A-share listed companies as our sample to make the empirical test between the financial reporting fraud and the characteristics of Board chairmen. In addition, we speculated that concentrated shareholding concentration and nature of property right have an effect on the relation of the characteristics of Board chairmen and the financial reporting fraud.This paper made the final analysis conclusion in allusion to the empirical analysis: Firstly, there is an active relationship between the time of Board chairmen with the financial reporting fraud; Secondly, there is a negative relationship between the age and education level of Board chairmen with the financial reporting fraud. After we conducted the multiple regression on the groups in accordance with shareholding concentration and nature of property right and got more interested findings. Firms with high shareholding concentration and state-controlled firms engage in more significant relationship between the characteristics of Board chairmen and the financial reporting fraud. Finally, the paper put forward some reasonable suggestions about avoiding the financial reporting fraud and changing the senior executives selection system.