Research On Correlation Between Tmt Background Characteristics And Financial Reporting Fraud

The financial report of listed Corporation is a written carrier to disclose its financial condition and results of operations information, also a foundation for internal and external stakeholders to make business and investment choices. In view of this, financial reporting information quality become the focus of attention of all stakeholders. In recent years, domestic and international financial reporting fraud intensified, accounting Information Distortion seriously, make the internal and external stakeholders suffer huge losses, also caused great impact on rational allocation of resources and the healthy development of the capital. According to the existing literature, the academia’s research on financial reporting fraud is mainly focused on the institutional rules and economic aspects. But it can be found in the case of financial reporting from the securities and Exchange Commission, the major exchanges and the financial sector that based on the reality of our country, as the company’s most direct management and financial reporting, in some degree, listed company’s senior management team is reflected from the subjective directly or indirectly, financial reporting fraud also basic source in TMT decision directly or indirectly. Therefore, executive team is the actors of financial reporting fraud behavior. According to the academic circles of the existing research results, reflected in different background characteristics of TMT executives perceptions, way of thinking, behavior ability and risk preference each are not identical, make the enterprise strategic planning and decision-making are not the same.Based on the above views, the correlation between the background characteristics of top management team and the financial reporting fraud is the problem of policy makers concerned, is also one of the core issues to be solved in academia.In this paper, we combined with normative research and case analysis. Firstly, the research results of background characteristics of the top management team and financial reporting fraud in recent years are summarized and integrated. Secondly, take the high order theory and its homogeneity and heterogeneity, financial fraud motivation theory, principal-agent theory, contract theory and information asymmetry theory as the theoretical basis of this paper, by deductive reasoning to analyse the relationship between executive team’s background characteristics and financial reporting fraud; Select the relevant financial fraud enterprises in China’s listing Corporation 2009-2015 and the corresponding control group to analyze the background characteristics of the top management team in China’s financial reporting fraud, puts forward the necessity of analyzing the relationship between the background characteristics of the top management team and the financial reporting fraud. Based on that, we selected Jahwa(600315) for three consecutive years in the 2009-2012 financial report fraud as a case sample, and select the same industry and same gradient listing Corporation(000737)-Nafine chemical industry as a control sample to analyse the correlation between executive’s background characteristics and financial reporting fraud. Finally, based on the results of the case study, put forward reasonable countermeasures to slove the problem in the construction of listed Corporation executive team in order to reduce the probability of financial reporting fraud, and improve the authenticity and reliability of accounting information of listing Corporation, purification industry environment and promote the orderly development of the capital market.The research results of this paper show that: the age of top management team、the proportion of female executives、the education background of top management team、the major background of top management team、the term of office of top management team、the shareholding ratio of top management team and the career path of independent directors will affect the occurrence of listing Corporation financial reporting fraud in varying degrees. Through the summary of the case study, we put forward the corresponding enlightenment from three aspects, which are the management team building of listing Corporation, legal system standard and the focus of Accounting firm audit.