Detection of Financial Fraud—The Case of Chinese Listed Co.
Bo Liu, Han Xiao-qin · 2012
The independence of the public accounting firm was facing a big challenge in the word wild.This paper selects 31 listed companies,which have been disclosed by CSRC or three main security newspapers during 1998-2009 in China,as the study objects.And collect 31 listed companies,whose financial situation is healthy in the same year same industry,as the control samples.Then we construct a comprehensive distinguish index system which reflects the total feature of the listed companies' illegal act from financial index and corporate governance aspects.By the forward step,logistic regression of the selected ratios,and then gets the model for detecting fraudulent financial reporting of listed companies in China.After being tested,the distinction accuracy of the combing model is 73.8%.