Characteristics Analysis And Governance Of Accounting Fraud In Chinese Listed Companies

Since the beginning of the securities market in China in the early 80s of last century,China's securities market has developed rapidly,and the scale has been expanding,which has promoted the rapid development of China's market economy.But at the same time,corporate accounting fraud cases occur frequently,fraud as an evil member of the herd harm the interests of investors,the rational allocation of resources,disrupt,is not conducive to the stable development of China's securities market.For decades,China's securities market supervision system perfect,the corresponding laws and regulations continue to improve,but the accounting fraud still repeated,this shows that the existing accounting fraud of listed company supervision still has many problems.This paper is based on this background,review the accounting fraud of listed companies of the common characteristics of accounting fraud of listed company supervision put forward some personal opinions,and accordingly put forward some improvement suggestions,hoping to contribute to improve the supervision level of the accounting fraud of listed companies.The definition of accounting fraud has not been unified and clear,and the use of it is confusing,and even mixed with other similar concepts.Based on the summary of fraud and accounting fraud at home and abroad for various interpretation,clearly defined in this paper for accounting fraud,accounting fraud in this paper refers to the result of resort to deceit or concealment caused distortion of financial reporting behavior.Compared with the earnings management,the scope of accounting fraud behavior beyond the laws and regulations and relevant standards.Compared with the distortion of accounting information,accounting fraud behavior emphasizes the intention and the distortion of the accounting information is only a description of the consequences.Compared with the accounting errors,accounting fraud is to deliberate deception for profit,and accounting error is not the cause.In the analysis of the characteristics of accounting fraud in Listed Companies in recent years,considering that a single sample may be lack of representativeness,this article is not limited to a certain point at a certain time.In this paper,all the administrative penalty of 2014 to 2016 years China Securities Regulatory Commission decided to sample database,select 40 companies in recent years because of accounting fraud penalties by CSRC in fraud in every single year of fraud companies as a sample,a total of 114 samples.Based on theoretical analysis,this paper summarizes and analyzes the forms and characteristics of accounting fraud cases in recent years.(1)Temptation of interest is the core cause of accounting fraud in listed companies.The current publishing system and pricing methods have made many companies change their shares once they are listed,and the company has gained huge economic and non-economic benefits through listing.(2)Obtaining or maintaining listed qualification is the direct pressure of accounting fraud behavior of listed companies.The company listed for the company and management to bring huge benefits return,and has the opportunity to continue financing.But the company losses or fraud exposure are likely to lose the qualifications listed,so many companies to seek listing,or in order to avoid consecutive losses delisting,or to conceal fraud before,often take the extreme behavior of accounting fraud.(3)Fraud concentrated in the profit statement fraud statements and fraud,and often take a variety of means of fraud,fraud in the company's profitability is generally poor,this is the main motive for the fraud.In addition,fraud firms tend to continue to cheat unless otherwise investigated.(4)For the accounting fraud of listed company supervision has obvious lag,fraud of listed companies from the first,to receive the Commission Decision on punishment,the average interval of 4 years,have been exposed in identifying fraud investigation and supervision of processing efficiency.(5)The internal governance mechanism is not perfect,which provides an inherent opportunity for accounting fraud of listed companies.Because of the irrational ownership structure,the internal checks and balances mechanism of the listed companies fails,the internal supervision system of the listed companies has become a mere formality,and this has provided the soil for the breeding of accounting fraud.(6)The external supervision fails to create external conditions for accounting fraud of listed companies.Whether the Commission in the verification of the listing application is not strict,the CPA or external audit lost due to the independence of the trapped reflects the current external supervision on accounting fraud of listed companies there are many loopholes.(7)The cost of fraud is far lower than the income of fraud,accounting fraud of listed companies.According to the current accounting fraud penalties than before although increasing,but compared to the fraud to bring fraud gains and losses on the market and investors,the existing punishment is still somewhat weak,and this is many in the edge of the fraud company chose one of the reasons why the rush into danger.Based on the analysis of the characteristics of accounting fraud in recent years,this paper puts forward some suggestions to improve the supervision and prevention of accounting fraud.In order to make the proposal clear and easy to understand,this article does not make recommendations for the characteristics of fraud,but it is divided into three aspects:system construction,internal governance and external supervision.The system construction,this paper proposed to further improve the system of issuing and pricing of new shares;perfecting delisting system and compensation mechanism,ensure the stock out of the market mechanism;perfect the legislation,intensify the punishment of fraud,fraud cost increase.The internal governance,should actively develop institutional investors to improve the equity balance mechanism,clear the duties of independent directors,the establishment of independent supervisory system;external supervision,supervision institutions increased the intensity of the investigation,the key is to improve the supervision of specific companies,the external audit quality.