The empirical study on fraud and governance characteristics in Chinese listed Private Companies

Through empirical analysis of the listed Private Company fraud, this study reveals the complexity and conflict in the listed companies of China. Based on it, we contrast on the frauds of private company and non-private company. We found that the characteristics of private company led to this fraud phenomenon. The private company fraud usually is positive correlation to stock holdings of executives and chairman of the Board. In non-private company, the Board of Directors and Board of Supervisors can restrict with the frauds. In addition, the Director´s salary or Independent Directors allowance is negative correlation to the frauds. This can partly explain the complexity and conflict in overall samples.