The Relationship between Corporate Governance and Financial Fraud:An Evidence from Chinese Listed Companies
Yao Tao · Journal of Chongqing University. English Edition · 2006
Financial fraud is a problem which troubled auditors all along.How to protect from financial fraud by public companies and solve the problem about financial fraud are concerned by investors,creditors.Combined with the institutional background of Chinese listed companies,the thesis analyzes the influence of internal and external governance systems on financial fraud,mainly forms corporate governance point of view.The empirical study practices mean test and Logistic regression test between the 34 fraud samples and 34 no fraud samples of Chinese listed companies with the internal and external governance variable such as ownership structure,CEO tenure,characteristic of board of directors and the law by control of factor about size and liquidity.We conclude a result that factors of the ownership concentration,league of minor shareholders,CEO tenure,CEO duality and the law have effects on financial fraud. Finally,we give suggestions for preventing financial fraud and improving corporate governance system in China.