Analysis Of The Timeliness And Motivation Of The Disclosure Entity Of Financial Frauds From Chinese Listed Companies

At the beginning of 21 st century,a great deal of financial fraud occurred in the domestic and foreign stock markets.The financial fraudulent activities of companies such as Enron in the United States and China's Dahlman triggered concerns in the financial fraud management community.With the development of global capital markets,the number of listed companies is also rapidly rising.Financial fraud emerge in an endless stream,many times to refresh the records of financial fraud of listed companies,the financial fraud of listed companies has become a chronic illness of healthy social development.The starting point for financial fraud in the governance of listed companies is to discover and expose financial frauds,however,in practice,many companies have not been discovered or have just been discovered,this inefficient disclosure entity of financial frauds seriously restricts the healthy development of the capital market.Based on the investigation of the disclosure of financial frauds,this paper analyzes in depth the motivation and behavioral alternatives of exposing frauds and explores ways to improve the efficiency of exposing frauds.This study has a more significant meaning in promoting the standardized operation of listed companies and building a fair and equitable capital market.Take the listed companies whose financial frauds were disclosed in 2010-2015 as the research object,aiming at the disclosure entity of financial frauds from Chinese listed companies,this paper mainly analyzes the efficiency of disclosure,the motivation of disclosure and the influencing factors.By manually sorting out the problems exposed by the financial frauds,this paper descriptively analyzes and summarizes the evaluation of the financial frauds and the exposures of financial frauds from listed companies.Combining with the game analysis method,the government regulatory agencies,the media,the auditors and the internal staffs are established as the game players Four game model.In this paper,the influence mechanism of each factor in each game relationship on the decision of revealing behavior of game subject is studied deeply.Through game analysis,the article draws the following conclusions:(1)The probability of the auditor exposing the behavior is closely related to the auditor's probability of obeying professional ethics,accepting the amount of bribe,auditing fees,the auditor's punishment and the probability of pressure from clients.Reputation,rewards programs,and the introduction of civil litigation all add to the auditor's choice of exposing behavior.(2)The probability that the judicial departments such as the CSRC and other judicial departments expose the financial fraud is positively related to the punishment of judicial personnel,penalties of fraud participants and government supervision of dereliction of duty.(3)The probability of exposing the behavior of the media is inversely related to the disclosure of the office size and the difficulty of disclosure,and is positively related to the amount of the fine after the disclosure.(4)In general,internal staff tend to not disclose financial fraud,and the introduction of reward and punishment mechanism will enhance the enthusiasm of internal staff to expose behavior.Unlike other entities,auditors have been given the responsibility of verifying and exposing financial frauds from the beginning.Taking the auditor as the object of the questionnaire,this paper analyzes the factors that the auditors choose to expose the financial frauds and further proves the outcome of the game evolution.Taking the auditor as the research object and analyzing the factors that affect the exposing behavior,the research results show,Professional ethics and reputation have a significant positive impact on disclosure of financial frauds;Incentives,penalties and civil actions have a positive impact on the disclosure of financial fraud but are not significant;Bribery,pressure from clients has a significant positive impact on non-disclosure of financial fraud;however,audit fees have no significant impact on the disclosure of financial frauds.Based on the above analysis results,it proposes measures and suggestions for improving the susceptibility of financial fraud from the four main entities such as auditors,the CSRC and other judicial departments,media,and internal employees.That is,improve the independence of auditors and accounting firms,establish effective elimination and punishment mechanisms,and establish auditors' integrity files.improve laws and regulations,increase penalties and set a reasonable level of salary,protect the status of media supervision from the law,The innovation of this article is to explore the factors that affect the disclosure of financial fraud from the perspective of game theory,and to broaden the new perspective of financial fraud and also promotes the application of game theory in the field of financial fraud,which has certain practical and theoretical values.