A Research On The Identification And Supervision Of Financial Fraud In Listed Companies

With the vigorous development of my country's socialist economy,my country's capital market has also achieved rapid development in the past 30 years.The number of listed companies has increased from the initial dozens to more than 4,000 now.The capital market can not only serve Listed companies provide a place for financing and can realize the redistribution of residents' wealth.The status of the capital market in my country's economic development has gradually become prominent.However,in contrast to the rapid development,financial fraud incidents have emerged one after another in the capital market,and the methods of fraud have changed a lot,and a series of financial fraud scandals have been exploded in the past two decades in both domestic and foreign capital markets.Financial fraud has caused serious harm to investors and even the capital market,which in turn affects my country's economic development and people's livelihood.Although my country's Securities Regulatory Commission has formulated many listed company laws and regulations for financial fraud,its punishment for fraud is much smaller than that of foreign countries,so it is difficult to supervise fraudulent behavior well for the time being.As a result,financial fraud incidents are still frequently exposed.In view of this status quo,it is particularly important to take effective supervision of financial frauds of listed companies,even when they first implement financial frauds,to identify their frauds and prevent them before they happen.This article is based on the theoretical research of financial fraud motives by foreign scholars,especially based on the GONE theory.This article selects leading companies in the special steel manufacturing industry and at the same time backs the listed company of the SASAC—ST Fugang as the case analysis object,and analyzes its strengths.For the financial fraud incidents of state-owned enterprises that are eight years old and have a huge amount of fraud,through collecting relevant data,analyzing the process,main methods,and reasons of their financial frauds,and qualitatively and quantitatively identifying their fraudulent behaviors,and finally putting forward the relevant information Countermeasures against financial fraud.AS for the empirical research,85 companies punished for financial fraud by CSRC from 2013 to 2019 were selected as the fraud sample group according to the violation information database of CSMAR,and 85 normal companies were selected as the control group according to the same industry and similar asset scale.First,according to the classification of financial indicators by the WIND financial terminal,19 financial and non-financial indicator variables are initially screened,and then the initial indicators are first significant according to the steps of normality test,independent sample T test,and non-parametric test.Test screening,perform principal component analysis on significant indicator variables,perform further dimensionality reduction operations on them,and substitute the obtained four principal component factors into the Logistic regression model,and finally obtain a representative of the company's solvency,operating capacity,and profitability.The three principal component factors can significantly affect the occurrence of financial fraud,and the financial fraud identification model of listed companies in China is obtained.Finally,the model is applied to the case analysis company ST Fugang's financial fraud identification.