Research On The Incentive Mechanism For Employees In Chinese Listing Corporrations Exposing Accounting Frauds

Since last century,cases of accounting frauds frequently exposed,from the United States of Enron,WorldCom and Xerox to MccGwire in the United Kingdom,Japan's Mitsubishi Motors to Yinguangxia and Dongfang Electronic Corporation in China,their wide ranges and serious hazards are beyond our imagination.Therefore,exposing accounting fraud is especially important.Employees as an important part of the company,comparing with the outside whistleblowers,are in pole positions in terms of fraud information accessibility.For this reason,it is particularly important to establish a comprehensive and effective incentive mechanism and promote employees to reveal accounting frauds.This article uses completely random experimental design method by multiple factors,researching subjects in 8 different levels of incentive mechanisms of simulated scenarios and the possibility of exposing accounting frauds.Through analyzing the data gathered from experiments,we obtained following conclusions:(1)a high level of material incentives,a high level of communication and protection incentives or a high level of respect and honors incentives will increase possibilities of employees' exposing accounting frauds;(2)a high level of incentive mechanism,in other words,a high level of material incentives,a high level of communication and protection incentives and a high level of respect and honors incentives,will significantly increase whistleblowing,and the three variables exist interaction;(3)Only when communication and protection incentives at a high level,enhancing other incentives can significantly promote the possibility of whistleblowing;(4)males and females facing different incentives reveals significant differences behavior.Men are more sensitive to material,while women are more sensitive to respect and honors.However they are all sensitive to communication and protection incentives.Based on the above conclusions,this article puts forward some recommendations from the individual,enterprise and national perspective,and gives specific measures,particularly in communication and protection incentive policies,in order to guarantee whistleblowing successfully achieved.