Causes For Fraud In Financial Report Of Listed Companies In China And Governance Analysis

At present,China's listed companies have a rapid development in the number and size.The fraud of financial reports of listed companies is more and more frequent,which also have a more and more harm.In this paper,it summarizes the present situation of financial report fraud,the negative impact and the common means of implementing the financial report fraud in our country,using the method of induction,case analysis and empirical analysis.Then,the article uses the method of empirical analysis to discuss the causes of listed companies financial reporting fraud,and put forward specific measures to solve them.The current financial reporting fraud in China's listed companies show a trend of continued deterioration.It includes fictitious economic business or transactional matters,virtual assets and hidden debt,the use of related transactions,the use of inappropriate accounting policies,the use of time difference fraud,hidden major transactions and through non-profit fraud,etc.,showing a variety of features.The empirical analysis shows the following reasons,the more concentrated ownership structure of listed companies,the greater the possibility of financial reporting fraud,the higher the proportion of the board of directors,the greater the likelihood of occurrence of financial fraud,the lower the quality of assets,the lower the efficiency,the company financial The greater the likelihood of reporting fraud.The root cause of the above problems lies in the interests of all parties,the impact of equity financing preferences,institutional imperfections and moral deficiencies and so on.Final conclusion,the article suggests that listed companies need to strengthen internal control and supervision on disclosure of financial reports.On the other hand,it is necessary to improve the supervision of related party transactions and related rules and regulations,standardize the CPA industry and promote the development of institutional investors.It canensure that listed companies can timely,comprehensive and truthful disclosure of corporate financial reports for investors to develop and implement investment decisions provide an effective basis and reference.