Empirical Study On Financial Fraud Based On Heterogeneous Belief

With the rapid development of capital market in China,most of the managers of listed companies have appeared the situation of the inaccurate accounting information in financial statements,for example,they make the appearance of public companies very perfect by missing out the cost or recording more income of the current period,announcing the information very late or ignoring important issues,then get it out to the outside before people to obtain more investments.Therefore,from the perspective of enterprises,financial fraud is beneficial,but at the social level,it is unfavorable.On the one hand,it affect the order of social and economic development,on the other hand,investors suffer huge property losses.Because it leads to the level of the result very serious,many scholars at home and abroad have begun to make the guess about financial fraud from different views and have proved it in empirical analysis.It is common that lots of scholars discuss problems about financial fraud through the company's internal control,the structure of the organization department and the external agency supervision.In recent years,many scholars find that the assumption of investors' homogenous beliefs cannot explain the abnormal phenomenon in the financial field or acquire correct conclusions.They begin to realize that every investor as an individual in the capital market with stock trading.We can make the explanation about problems appeared in the market in differences of investors.So from the heterogeneous belief of investors to state the abnormal phenomenon in the financial field is a way to resolve problems.The external investors are mainly the financial information in the financial report of the company as the basis for the assessment of the company.However,they often make a big difference in their understanding of the same information in the market for their own reasons,which will directly influence the decisions they make when they intend to invest.When the operators of Enterprise catch the characteristics of the differences between investors,they can choose the financial information which is important to the enterprise and make adjustments to attract the attention of the irrational investors in the market so that managers achieve the purpose of refinancing.Therefore,we find that the existence of subjective differences of investors can impact the authenticity and reliability of financial information.To sum up,this paper believes that the existence of heterogeneous beliefs of investors will lead to financial fraud.This paper selects 92 A-share listed companies which are punished because of financial fraud in 2012-2016 as research samples.At the same time,we choose matching samples for each research sample according to certain norms.These samples have a common characteristic which is that they have never happened financial fraud.Then,we use SPSS software,construct the binomial Logistic model at the same time and utilize the analysis methods of descriptive statistics,correlation and multiple regressions to study the relationship between heterogeneous beliefs and financial fraud.Through the analysis,this paper concludes that there is a significant positive correlation between the heterogeneous belief and financial fraud.When the heterogeneity is greater,the probability of financial fraud in public companies is higher.When the degree of heterogeneity is smaller,the probability of financial fraud in public companies is lower.This paper studies its influence on financial fraud from the perspective of heterogeneous beliefs.It is different from previous researches on fraud.The result of this study can make us have a deep know about reasons of financial fraud appeared in A-share companies and give a theoretical support when we research the similar or same problems.Meanwhile,it can provide another way for us to govern the corrupt practices of companies availably in practice.