Study On Detecting Of Financial Report Frauds Of Listed Companies In China

With the problem of fraudulent financial reporting becoming more and more serious among the listed companies, and thus economics consequence incurred, investors, creditors, government and institutions related have already taken the fraud into great consideration. How to detect the fraudulent financial reporting? How to protect from fraudulent financial reporting by public companies and solve the problem? These problems are troubling auditors all along.The overseas research about the fraud is already extremely widespread, and also obtained great achievement. However, the research about it in domestic is limited, mainly involves motive, origin, prevention and other aspects of fraud, which are fundamental theoretic research, using the empirical analysis research is still not too much , and very few people stand in the interior corporate governance to research the fraud. When a listed company has a strong sense of fraudulent motives, some imperfect interior corporate governance structure of listed companies provided an opportunity, and has become the most deep-seated reason of the fraud.Combined with the special background of Chinese listed companies, this thesis analyses the influence of interior corporate governance with fraudulent financial reporting, trying to find out a way to detect the fraudulent financial reporting from the true one, and to prevent its happening. This thesis reviews theoretical and empirical literatures on interior corporate governance and fraudulent financial reporting, then analyses the current status of Chinese listed companies deeply. After analyzing the relationships between interior corporate governance and fraudulent financial reporting, I put forward several hypothesizes. In part of empirical studies, I practice mean test and Logistic regression test between the 32 fraud samples and 32 no-fraud samples of Chinese listed companies with the variables of interior corporate governance, such as the ownership structure, the characteristic of board of directors and the characteristic of board of supervisors by controlling the factor of the size of the listed companies. We conclude a result that factors of the first-large shareholders, the ratio of the executive directors and the times of board meetings have great influences on fraud, while the other factors of interior corporate governance do not have remarkable differences, explaining that company governs still have many flaws in our country and have not been able to effectively prevent, discover and correct fraud. Then I established the regression model to detect fraud by using Logistic Forward-Wald. and tested its .Finally. I put forward some suggestions to prevent fraud, summarize the conclusion of this thesis, point out its limitations and its future directions of developments.