| In present literature studies, the domestic and foreign scholars analyze the financial reporting fraud of listed companies mainly from the system level and economic level, but this article chooses the background characteristics of the top management team to study the problem of financial reporting fraud of listed companies, discusses if the top management team characteristics variables like gender, age, educational background, term have impact on the occurrence of financial fraud, which widen the study of financial reporting fraud background characteristics.Nowadays, we can see enterprises as the result of tie of a series of contracts in the present market based on contracts theory and principal-agent theory, whose typical feature is separation of two rights. In China, those Board Chairmen who holding no or less shares of the company have the decision-making power in the importantly daily activities, so the information which disclosed by financial statements of accounting certainly indirectly reflects and contains their subjective wills. We can clearly find that in most cases most financial frauds are in the charge of the senior executives. In real life because of the difference of their genders, ages, terms, scale, holding shares, payments and values etc, there exists big difference in the behavior choices of Board Chairmen. Meanwhile, nowadays the foreign related researches have present that the background characteristics of Board Chairmen have some effect on the company’s behaviors. Therefore, In China, whether the background characteristics of the listed company Board Chairmen have something to do with the company’s behavior is quite worthy of further research, especially for the financial reporting fraud.In this paper, the author uses a large sample and establishes the logistic mathematical model to test the degree of the correlation between Top Management Team background characteristics and financial reporting fraud. The conclusion of this paper include:(1) Top management team mean gender, age heterogeneity, educational background heterogeneity, the board size with the company’s financial reporting fraud propensity is no significantly correlated.(2) Top management team mean age, mean term, mean heterogeneity, term heterogeneity with the company’s financial reporting fraud propensity is significantly correlated. Based on empirical research, we put forward some suggestions:one is to increase the average age of the senior management team, two is to change the way we appoint the senior management team, gradually to abolish the electing system, and to extend the term of the senior executives, three is to improve education level and professional quality of senior management team, and to treat high and low education level as important selection basis of senior executives.The article is divided into the following six parts:The first part is the introduction. This section describes the research background and meanings; research methods, the main research content, and the main innovation.The second part is the literature review and comments. This section respectively summarized and reviewed the literature of Top management team background characteristics and financial reporting fraud.The third part is theoretical basis and concept definition. The analysis relevant theory top management team background characteristics, financial reporting fraud and relevant concept definition.The fourth part is the study design. This section first gives the research assumptions on the basis of theoretical analysis and then introduced the samples and data sources. Furthermore, set the research model.The fifth part is descriptive statistics and empirical regression results. This section uses descriptive statistics to the overall characteristics of the sample, and then tests hypotheses through empirical regression models.The sixth part is conclusions and recommendations. This section puts forward strategic suggestions on the construction of top management team background characteristic. |
PDF Full Text Request