Research On The Influencing Factors And Countermeasures Of Financial Fraud Of Listed Companies

With the rapid development of the new era of economy,the listed company to investors demand more and more intense,some would use various means to whitewash financial statements of listed companies,so that report users get error messages,making the wrong judgment,which not only make the individual investors were severely damaged,but also damaged the healthy operation of the enterprise,resulting in the loss of national resources,serious Affecting steady economic growth.This paper studies the determinants of financial fraud of listed companies can make investors more effective prevention of heavy losses as a result of fraud company boss,at the same time for regulatory legislation to perfect regulatory legislation related issues provides the basis,more important is made aware of the seriousness of the problem of financial fraud of listed companies to improve financial quality.This paper first analyzes the basic characteristics and behavioral performance of financial fraud of listed companies in my country and uses a large number of cases to provide evidence,and then selects the listed companies that have been administratively punished by Shanghai Stock Exchange and Shenzhen Stock Exchange from 2005 to September 2021 as the At the same time,based on the GONE theory of financial fraud,research assumptions are made on the influencing factors of financial fraud in listed companies,and variables are selected,and the binary Logistic regression model is used to empirically study the correlation between variables and financial fraud,and establish financial fraud.Identify the model.The empirical results show that:(1)Among the factors affecting the greed factor: the proportion of senior managers’ shareholding and financial fraud is negatively correlated,and the result is not significant.Management’s shareholding can reduce costs and reduce the risk of financial fraud.The management shareholding ratio of listed companies is relatively low,and even the management shareholding ratio of most companies is 0,which creates opportunities for financial fraud to a certain extent.(2)Among the influencing factors of the opportunity factor: whether to replace the certified public accountant or not has a positive correlation with financial fraud,and the result is not significant.There is a negative correlation between the size of the board of supervisors and financial fraud,and it is significant at the level of 5%.There is a negative correlation between the chairman and the general manager and financial fraud,but the result is not significant;the shareholding ratio of the largest shareholder and financial fraud are positive.Correlation relationship,and it is significant at the level of 5%.The larger the shareholding ratio of the largest shareholder,the more serious the internal centralization,the easier it is to deprive the minority shareholders of their right to speak,resulting in management fraud and damage to the interests of minority shareholders and investors..(3)Among the influencing factors of the demand factor: the asset-liability ratio has a positive correlation with financial fraud,and it is significant at the level of 5%.When the asset-liability ratio exceeds a certain level,the corporate finance will face higher risks and challenges,which will lower the efficiency of the use of corporate funds,increase the cost of capital,and even affect the corporate capital chain,making it impossible to pay off debts on time,increasing corporate operating pressure,and ultimately It will lead to the company going into bankruptcy.The gross profit margin of sales and financial fraud have a negative correlation,but the results are not significant.Inventory turnover has a positive correlation with financial fraud,and accounts receivable turnover has a negative correlation with financial fraud.Inventory turnover ratio results are not significant.(4)Among the influencing factors of exposure factor:the scale of independent directors is negatively correlated with financial fraud,but the result is not significant.Although all listed companies in my country have set up independent directors,the proportion is unscientific,so the control of financial fraud is weak.Through the results of empirical research,this paper proposes governance countermeasures for the financial fraud of listed companies from the perspective of internal enterprises,the perspective of national regulators and the perspective of investors.