Fraudulent financial reporting in China: Evidence from corporate renaming

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE
Yefeng Zhang, Yuyu Zhang, Troy Yao
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引用次数: 6

Abstract

Using a sample of listed Chinese companies during 2010–2019, we examine whether corporate renaming is associated with fraudulent financial reporting. We find that companies that change their corporate names without making underlying changes to business fundamentals are more likely to commit financial reporting fraud. The positive association between corporate renaming and financial reporting fraud is more pronounced for non-state-owned enterprises and companies with a lower ownership concentration. There is further evidence that corporate renaming is more likely to be associated with disclosure-related fraud (e.g., failure to disclose or delayed disclosure) and that the likelihood of fraudulent behavior increases with the frequency of corporate renaming. Overall, the findings of this study provide evidence of a new red flag for regulators and investors investigating financial fraud. This study is timely and has policy implications for market regulators hoping to establish and improve emerging capital markets in which the information environment is generally considered weak and opaque.

中国的虚假财务报告:来自公司更名的证据
本文以2010-2019年的中国上市公司为样本,研究了公司更名是否与虚假财务报告有关。我们发现,改变公司名称而不改变业务基础的公司更有可能犯下财务报告欺诈。在非国有企业和股权集中度较低的公司中,企业更名与财务报告舞弊之间的正相关关系更为明显。有进一步的证据表明,公司更名更有可能与披露相关的欺诈(例如,未披露或延迟披露)联系在一起,并且欺诈行为的可能性随着公司更名的频率而增加。总的来说,这项研究的结果为监管机构和投资者调查金融欺诈提供了新的危险信号。这项研究是及时的,对希望建立和改善新兴资本市场的市场监管机构具有政策意义,在这些市场中,信息环境通常被认为是薄弱和不透明的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.00
自引率
3.00%
发文量
24
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