An Empirical Study On The Recognition Of Financial Reporting Fraud In China's Listing Corporation

Financial report to the outside world to pass an important carrier of information,effective and complete the report can for investors to make economic decision provides a powerful basis.However,the legitimate interests of financial reporting fraud not only damages the investor and disturbs economic order of the capital market.From the beginning of the South Sea Co financial fraud,financial reporting fraud problems have not been effectively control,and cause more and more economic losses.The research of financial report fraud has been studied for a long time,and has formed a relatively complete theoretical system.From the existing literature,the study of financial reporting fraud mainly focuses on its motivation,recognition and prevention and governance.The overall research in China started late,the level of lag in foreign countries,the research direction from the case analysis,normative analysis and empirical analysis.Detection of fraudulent financial report is in recent years,the main research field,from the initial use of "red flag" sign to judge the financial reporting fraud exists the possibility to now using data mining techniques to build models to forecast,the current reached ideal effect.At present,the influencing factors of financial reporting fraud are more in the company's internal environment,and less research on the impact of the external environment.In recognition of the method,often use the logistic regression method to build the model to obtain accuracy,but not to further explore the company's internal and external environment on the financial reporting fraud.In this paper,based on the shortcomings of the.This paper selected 50 2001-2013 years of the implementation of the listing Corporation as a research sample of fraud,the other 50 non fraud listing Corporation as a paired sample.Using induction,comparison and other means of summed up our country listed companies often use the fictitious economy business,concealed or missed major matters of the fraud means,analysis of the fraud,the crime for a long time,industry distribution is relatively concentrated,the specific characteristics of the management is low and increase the recognition rate to provide a basis for Gou Jianmo.In the empirical part,the main factors affecting the financial reporting fraud are selected,the 14 variables which can describe the characteristics of the company are selected from two angles of the internal and external environment.Using descriptive statistical method preliminary analysis of 14 explanatory variables,and then used logistic regression methods to test the hypothesis,it is concluded that asset turnover ratio,total profit growth rate,two post synthetic and ST companies four explanatory variables has relatively strong ability.At last the fast recognition,the existence of fraud related to the model constructed.Corrupt governance related suggestions based on the above research conclusion is proposed,it should be from the perspective of improving the enterprise internal and external environment of the internal environment of the company should be appropriately increasing the degree of ownership concentration;the implementation of dual leadership structure;strengthen high-level personnel performance appraisal;improve the efficiency of the supervision of the board of supervisors,.From the perspective of the company's external environment,it should improve the capital market exit mechanism,refine the delisting standards and improve the financial reporting fraud penalties,and improve the accounting related laws.