Financial Fraud Identification Of Listed Companies Based On Risk Factor Theory

Since the emergence of the securities market,financial fraud has never stopped,its harm is great,it will make it difficult for investors to distinguish the merits of the company,make the capital market is difficult to operate effectively,and may eventually lead to the "bad money out of good money" lemon market,thus disrupting the economic development of the country,harm the smooth operation of the society.Although the governments of various countries have introduced corresponding measures against the financial fraud of listed companies and achieved some results,the governance of financial fraud is still a long way to go.If we want to take effective measures to solve the problem of financial fraud,we must first understand the causes of financial fraud,in order to do the right thing.Is a key link in the process of antifraud financial fraud identification,through the analysis and identification of all kinds of information,including financial and non-financial information,do it as soon as possible to identify companies with financial fraud risk,can effectively combat the implementation of financial fraud company,help investors avoid traps for fraud and maintain all stakeholders,not just a big shareholders' interests,to further improve the securities market of our country.This paper,by using the listed company information in the CSMAR database information about violations of financial fraud of listed companies,and has access to the China Securities Regulatory Commission(CSRC)and its subordinate authority sites around the disclosure of financial fraud of listed companies to issue in the administrative penalty,on this basis,find between 2013 and 2018,punished by the implementation of financial fraud of listed companies.Firstly,the financial fraud status of listed companies in China is analyzed,including the financial fraud time statistics,the scale and performance characteristics of financial fraud companies,the industrial and provincial distribution characteristics of financial fraud companies,the characteristics of external audit,and the consequences of financial fraud.Secondly,it analyzes the three stages of the development of financial fraud in China and the specific implementation methods.Through analyzing the architecture of financial fraud motivation theory as well as the existing literature on financial reporting fraud identification of various research variables,this article through to fraud sample one-to-one ratio of the sample for fraud,according to the theory of fraud factors generally fraud factor and individual factor for fraud,using two kinds of sample has significant differences in the financial indicators and non-financial indicators using binary logistic regression analysis,this paper build up our country listed company financial fraud identification model and the model of overall discriminant accuracy reached 70.3%,the model can distinguish financial fraud effectively.Based on the above research analysis,this paper gives advices from five aspects: eliminating the opportunity of fraud,improving the probability of fraud detection,increasing the cost of fraud,inhibiting the motivation of fraud,and improving the moral quality.