Financial Ecological Environment,Institutional Investors' Shareholding And Financial Fraud

With the rapid development of China's capital market and the rapid increase in the number of listed companies,the main market transactions in the capital market,the goal of increasing and more complex in recent years,accounting scandals continue to occur in China.More famous are:"Zheng Baiwen","Silver Guangsha","Lam Tin shares" is not conducive to the development of China's capital market;In the capital market is more developed in the United States,the financial scandal is to make the world staggering.The motivation,recognition and governance of financial fraud are widely concerned by academia and practitioners,as well as government regulators.Corporate financial fraud not only undermine the interests of the majority of investors,but also to shake the confidence of investors in the capital market as a whole.Improve the ability of financial fraud identification and management,help to improve the quality of accounting information,protect the interests of investors and maintain the healthy and stable capital market,but also promote economic and social development of an important issue.Institutional investors as a bridge between ordinary investors and listed companies,but also as a special external governance mechanism,because of its special advantages are high hopes.With the strength of institutional investors,whether institutional investors play the role of protecting the interests of small and medium investors as expected by the government will help to improve the information disclosure situation in China and help to curb financial fraud?This paper attempts to study the role of institutional investors in financial fraud from the perspective of financial fraud and whether the financial ecological environment as an exogenous variable plays a role in the relationship between institutional investors' shareholding and financial fraud.This paper studies the above problems and provides empirical evidence.This paper consists of seven parts,the specific content is as follows:The first part is introduction.This part starts from the research background,discusses the theory significance and the practical significance of the topic,the concrete research method and research mentality,and points out the possible innovation and deficiency of this article.The second part is literature review.This part reviews the role of institutional investors in corporate governance,the causes of financial fraud,identification and management of relevant documents,and comments on this basis.The third part is the theoretical basis.This part first defines the concepts of financial fraud,institutional investors and financial ecological environment,and elaborates the theory of principal-agent under the imperfect market conditions,triangle of financial fraud,stakeholder theory,so as to the fourth,the fifth part of the study to provide a theoretical basis.The fourth part is the research design.This part puts forward the hypothesis of the impact of institutional investors' shareholding and financial fraud,financial ecological environment and institutional investors' ownership,financial ecological environment and financial fraud,financial environment on the relationship between institutional investors' shareholding and financial fraud.Defined explanatory variables,explanatory variables,control variables,and build models.The fifth part of the sample empirical results analysis.This part uses Excel2010 and Statall to carry on the statistical analysis to the sample data,the hypothesis has been verified.Part ? is the robustness test.The seventh part of the study conclusion and enlightenent.This paper argues that institutional investors holding shares can significantly inhibit financial fraud;the better financial ecological environment in the region,the higher the proportion of institutional investors;poor financial and ecological environment of the region,the more prone to financial fraud.In the regions with poor financial environment,the effect of institutional investors on financial fraud is more significant.