The Research On The Characteristics Of Financial Report Fraud Of Listed Companies

Accompanied by the establishment of the stock market and the generation of listed companies,the Financial Report Frauds of listed companies also arise.The main basis of resource allocation in stock market is the efficiency and effect of creating wealth with capital by listed companies.Meanwhile,the financial informations that provided in the financial reports from listed companies is the most intuitive reflection of their capital utilization competence,also the great significant reference that used by market participants to evaluate listed companies.If the financial reports are falsified and therefore cannot reflect factually the actual state of operation,it will mislead the market participants seriously,which leads to the misallocation of limited resource.Several research approaches have been adopted to research the characteristics of Financial Report Frauds of Chinese listed companies in this paper,including literature research method,descriptive statistics method,case analysis method,qualitative analysis method etc..On the one hand,general characters changing situation of the financial frauds of the listed companies in China have been statistical described.On the other hand,through the typical case analysis of China's listed companies Financial Report Fraud characteristics of a changing trend.In the end,the relevant characteristics and root cause of the changes of the characteristics has been analyzed.This paper works out following research conclusion:1.Benefit by the China stock issue sponsor system has been established since 2004,and the regulator has made the plan of financial special investigations after 2013,the Financial Report Frauds of listed companies have been reduced.2.Due to the combined effect of the consistent effect on the financial reports caused by previous fraud that have not been corrected and the fluke mind of the management,the persistence of the Financial Report Frauds of listed companies in China have not taken a favorable turn.Because the fraud is insidious and the supervisory process is complicated and long-term,the supervision measures on on identification and punishment of Financial Report Frauds of listed companies are still inefficiently.3.The ownership nature of Chinese listed companies who fraud on the financial reports were mainly state-owned enterprise before 2010.After 2010,with the steady increase of the amount of privately listed companies,and the improvement of the regulation on state-owned enterprise,the privately listed companies have been the main subject of Financial Report Fraud.4.As a consequence of that the largest amount of manufacturing listed companies,the number of fraud on manufacturing is still the lagest.However,the comprehensive industry and the industry of agriculture,forestry,animal husbandry and fishery have the highest occurrence rate of Financial Report fraud.5.70.41% of samples will commit frauds on the items confirmed in the statement,among which the proportion of adjusting asset items is up to 57.14%,and the proportion of adjusting income and other profit and loss items is up to 65.82%.Through the study of the financial report fraud case of Sunlight Company,the author believes that the superior company with financial report fraud has the motivation to commit fraud when the growth indicator represented by business income and the profitability indicator represented by net profit continue to deteriorate and deviate from the overall level of the industry.If the company's non-operating income and other accounts receivable abnormal increase,there is the possibility of fraud through related parties.This paper takes the descriptive statistics method on the changes of the characteristics of the Financial Report Frauds of the listed companies who had been punished by the China Securities Regulatory Commission between 2001 and 2018,and the typical case investigated and punished by the CSRC in 2018 is selected additionally as the research object to analyze the pressure,opportunity and excuse of fraud based on the "triangle theory" of fraud motivation.In this paper,the general changes of Financial Report Fraud number in listed companies,the fraudulent attitudes,the executive efficiency of regulators,the ownership construction and sectors of fraud company and the basic financial indicator characteristics have attempted to be evaluated subjectively.This paper provides academics a new research perspective,also provides support to the perfection of regulation policies.