Corrupt governance:The Analysis based on the characteristics of financial fraud of listed companies
Zhou Lan · Caijing lilun yu shijian · 2009
This article selects samples of 5645 listed companies from 2003 to 2007 from the stock exchange of Shanghai and Shenzhen.First,a statistics analysis to 209 companies which had some financial scandals is made in order to disclose the influential factors to their fraud activities and clarify the features of listed company's financial fraud.Then an empirical research is made according to the special features.The results shows that the selected rate by the large-scale agency,the concentration degree of ownership and size of company are negatively related to financial fraud,while the proportion of independent directors in the company has a U-type relationship with company fraud.However,return of equity which represents the financial condition has no significant relation,because the companies have many manipulation operations to latent surplus besides making fake profit.