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- Publisher
- Emerald Publishing
- Copyright
- © Emerald Publishing Limited
- ISSN
- 1359-0790
- eISSN
- 1359-0790
- DOI
- 10.1108/jfc-09-2022-0219
- Publisher site
- See Article on Publisher Site
Abstract
This study aims to explore the relationship between fraud triangle theory (FTT) and the accounting fraud phenomenon in all listed companies in China.Design/methodology/approachThe CSMAR database is used as the sample, including 16,063 data of all listed companies in Shanghai and Shenzhen markets for the 2010–2020 period. The authors also use quantitative methods, such as regression analysis, to investigate the relationship between five variables (cover three elements of FTT) and fraud occurrence.FindingsResults show that leverage and liquidity ratios positively affect fraud detection, whereas return on net equity, audit size and independent director percentage negatively affect fraud detection.Originality/valueThis study enriches theoretical research on the causes of accounting fraud in China and is of great significance to the sound development of China’s capital market.
Journal
Journal of Financial Crime – Emerald Publishing
Published: Jan 11, 2024
Keywords: Accounting fraud; Pressure; Opportunity; Rationalization; Fraud triangle theory