Characteristics of companies with financial fraud based on time-dependent COX model
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Abstract
Financial fraud of the listed companies taken place in China A share market from 2008 to 2015 was investigated. By using the time-dependent COX model, the characteristics of the financial fraud companies were analyzed from financial ratios, ownership structure, corporate governance and other aspects and the relative hazard rate of each factor was given. The results show that the greater the size of the company, getting a standard unqualified audit opinion, the greater its quick ratio, the higher the shareholding proportion of the controlling shareholder,and the higher the shareholding proportion of the board of supervisors, the smaller the likelihood that financial fraud will occur, while great frequency of board meetings will more likely result in financial fraud.
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