The Way, Motivation And Governance Research Of Chinese Listed Companies’Financial Fraud

From the perspective of foreign, In United States, Enron、HealthSouth、 Xerox shocked the world because of financial fraud; From the perspective of domestic,YinGuangXia、Zheng Baiwen’s Yun Nan Green-Land did not stop the step of financial fraud.In fact, there are more and more financial irregularities. Financial fraud damages the company’s reputation, cause great loss to our investors, while financial fraud seriously disturbs the order of the capital market, hinder the healthy development of the economy.Therefore the research for financial fraud is a very important issue and has also been academic many researchers.The purpose of this paper is to understand the phenomenon of financial fraud, reveal the means of financial fraud, find governance measures to control financial fraud. Put some suggestions to combat financial fraud, standardize the securities market, promote the healthy operation of the economy.This paper is divided into seven parts, the main contents are as follows:Chapter1:Introduction. At first, This chapter describes the background, the significance of the topic from a theoretical and practical significance. Second, The research methods in this paper are normative analysis and case analysis.Finally, this part describes the research ideas and the research framework.Chapter2:Financial fraud and related concepts. Defines the connotation of fraud, earnings management and accounting information distortion. That earnings management is neutral and is not the same as financial fraud, the accounting information distortion includes financial fraud and earnings management.Chapter3:Literature Review. This part talks about the domestic and foreign researches of financial fraud’s way, motivation, recognition and governance.Chapter4:Case study-based on YUNNAN GREEN-LAND financial fraud. Describes the basic situation of YUNNAN GREEN-LAND and the reasons for the choice of this case.Chapter5:the way of financial fraud of China’s listed companies. Based on the analysis of YUNNAN GREEN-LAND’s means of financial fraud,this section summarizes China’s the way of financial fraud. Incolding:inflating assets, inflating incomes, falsing transfer costs、cash flow and other fiction.Chapter6:The motivation of China’s listed companies--based on risk factors analysis theory. This part overviews the financial fraud risk factor theory.Using this theory analysis the motivation of China’s listed companies.Chapter7:Conclusions and the governance of listed companies’financial fraud.Through the study the way^motivation of China’s listed companies, as well as analysis of the Green-Land fraud case, the paper mainly has the following conclusions:(1) Twisted moral quality is the premise of Chinese listed companies’ financial fraud.(2) The improper motivation is the catalyst of Chinese listed companies’ financial fraud.(3) The chance of fraud is the breeding ground of Chinese listed companies’ financial fraud.(4) The impossibility found of fraud is the booster of Chinese listed companies’financial fraud.(5) The minor punishment plays a demonstration effect on Chinese listed companies’ financial fraud.Based on the analysis and conclusions of the study, this paper proposes governance recommendations of financial fraud, the main contents are as follows:(1) Control twisted moral quality.strengthen the construction of employees and enterprises’Fidelity.(2) Eliminate the improper motivation. Get rid of mind of results hero(3) Eliminate the chance of fraud. Improve the information disclosure system and corporate governance structure(4) Eliminate the impossibility found of fraud and the minor punishment. Strengthen the regulatory role of the accounting firm and punishment. The main contributions of the paper are:(1) Using the risk factors theory to analyze the motivation of financial fraud provides a reference for later analysis.(2) This paper study financial fraud based on Bologana’s risk factors analysis theory, but he did not propose these five factors’logic, this paper argues that they are an evolution：premise→catalyst→breeding groun→booster→effect. This is a new development.