Study on the Relation between the Board Characteristics and Financial Fraud of Chinese Listed Companies

This paper takes Chinese financial fraud listed companies which happened in 2001-2009 as a sample, and makes an empirical analysis between the relationship of the board characteristics and financial fraud with the paired-samples T test. The findings indicate that the company leadership structure and the board shareholding proportion of financial fraud and non-financial fraud listed companies have great differences, and they are significantly correlated with financial fraud. The board size, the proportion of independent director, the frequency of board meeting and the audit committee are not significantly correlated with financial fraud.