Listed Companies' Financial Fraud And Its Legal Regulation,

As it is well known, the quality of the financial information provided by the enterprises,wheather it is real or false, will have important influences on many aspects, especially on the government managing and regulating the macroscopical economy, on the outside shareholders learning the enterprise's financial position and operative achievements and on the enterprises themselves strengthening their administration. As the main body of the secrity market, the Listed Company's financial information has essential function in the sound development of the secrity market and even the whole national economy. But regrettably, in recent years,the financial fraud cases are emerging now and then in the domestic's security market,which not only cause huge losses to the investors and creditors and make the public lose confidence in security market but also make a huge confusion in the security market, leaving a very unfavorable impact on economic growth of our country. The Listed Company's financial fraud has already become the urgent subject of security market of our country to be solved. Because the security market of our country starts relatively late, the financial fraud has been paid attention to just in recent years. Our country is still at the starting stage in the research of the financial fraud, the relevant research in our country still seem insufficient. It has been broadly covered in auditing, economics and accounting, but rarely mentioned by the legal circle or just fragmentary concerns. In this article the author intends to seek some counter-suggestions to handle the Listed Company's financial fraud in legal view.This paper has the following five parts and has about 35000 characters,except the abstract and conclusion.The first part involves about the elementory ploblems of the Listed Company's financial fraud. Firstly, the author give a brief definition of what is the financial fraud. Secondly, through the financial fraud with surplus management, the handled profit and the distorted accounting information are compared, further define the intension of the financial fraud. Finally, in order to see the financial fraud clearly and discern it better, the author introduce some main behavior means to make the financial fraud in the practice. The second part explores the causes and harms of the Listed Company's financial fraud.In this part mainly covers the causes of the financial fraud. It is exactly existence of these reasons and interests conflict that have caused the Listed Company's financial fraud. The harm of the financial fraud is serious. It can cause the fault in national macro decision and enterprise's micro decision, interfere with the normal order of the security market seriously, encourage the malpractice in the accotmting profession arid mislead the investors and shareholders'decision, thus, severely harm their benefit.The third part briefly introduces some relevant theoretical foundations which have connection with the Listed Company's financial fraud. There are: Information asymmetry theory ,Efficient market hypothesis theory, Insider Control theory and so on.The forth part mainly summarizes the legal about financial fraud of American Listed Company and the legal structure system from which obtaining the enlightenment to our country. In this part, mainly taking Sarbanes-Oxley Act of American as an example, summarizing recommends the content of the legal about the Listed Company's financial fraud in American and obtain the enlightenment to Our conntry.The fifth part mainly gives some legal counter-suggestions to the Listed Company's financial fraud in the domestic's security market. The author thinks that should carry on following respects: Perfect the information announcing system; Improve the administration structure of listed company; Improve certified accountant's auditing and supervisory system; Improve enterprise's accounting criterion; Strengthen ethical construction and set up the sincere mechanism of security market.