Disclosure Of Financial Fraud And Improvement Of Corporate Governance

Since the establishment of China's capital market, not a long time, many legal and regulatory system is not perfect, which makes financial fraud has been a lot of living space. Financial fraud is very serious consequences, not only damages the interests of investors, but also seriously disrupted the development of securities markets and order, the company's reputation for fraud is a fatal blow. Many companies in order to restore the company's reputation in the financial fraud was discovered after working to improve the company's internal governance structure. We are likely to be some doubt, it is why companies do these? What are the benefits of doing so? These initiatives in the end have no effect? These issues are worthy of study. This article on the subject, and hopefully the company of fraud by empirical research samples to learn more about the discovery of financial fraud and the relationship between internal governance, financial fraud and corporate governance measures for follow-up recommendations.Firstly,In this paper, the financial fraud and corporate governance would be defined meaning, summarize and introduce domestic and foreign scholars on financial fraud and corporate governance of the relationship between theory and empirical research for the study of financial fraud after fraud company that follow-up to improve corporate governance issues a theoretical foundation for the article to build an empirical model to provide a reference basis. Secondly, the analysis of financial fraud and corporate governance changes that the relationship between assumptions and thereon to 2002-2007 due to information the disclosure of false or seriously misleading statements (or contains the above reasons) were the Commission, the Shanghai Securities Exchange The Shenzhen Securities Exchange public censure or punishment of A-share listed companies as a research sample, and under certain conditions, the study sample selection and corresponding control samples, by paired t-test to observe the fraud was discovered in financial fraud will be taken after action to improve internal corporate governance mechanisms, through multiple regression analysis to see whether these actions will cause some economic consequences. Finally, empirical results the following conclusions:First, financial fraud, fraud that makes the company has taken certain measures to improve board structure and ownership structure, which the company's board of directors of the characteristics of fraud and ownership structure all contributed to a certain extent; Second, the characteristics of the board of directors of fraud and changes in ownership structure had an impact on the performance of the company, including board meetings, the largest shareholder with a significant proportion of the changes are reflected in improved performance of the company's Tobin's Q value, which from the other a point that the financial fraud that will help improve corporate governance mechanism, thereby enhancing its performance.