Financial indicators are selected as research variable for empirical analysis on possibility of fraudulent financial statements and non-fraudulent financial statements.

Hypothesis of Four Factors for Fraudulent Financial Reporting and Its Empirical Test;

An Study on Fraudulent Financial Reporting of Listed Companies;

The paper finds that financial pressure faces by the listed companies is the direct incentives contributing to the fraudulent financial reports,while the ineffective corporate governance,poor CPA audit quality and insufficient punishment provide opportunity for fraudulent financial reporting.

The author indicated that it is just the first step to establish it,only should we improve the efficiency of it,we can govern the financial report defraud.

The problem of financial report defraud in listed companies can t be explained completely by internal controlling of man- agers,the several big shareholders have controlled the companies,thus they can get private interests,financial report defraud is only a means that can conceal their behaviors.

The dissimilation of incentive system of stock option and the embezzlement of financial report;

With the gradual development of Chinese stock market, accounting information disclosed by public companies has become an important source of information to investors when they are making their decisions, but because the financial statements frauds break out frequently in Chinese stock market.

Game-Theoretic Analysis on Financial Reporting Fraud of Listed Companies;

In recent years, the happening of financial reporting fraud incidents, such as Kelon, yinguangxia, has seriously affected the healthy and stable development of Chinese securities market.

In recent years, financial reporting fraud has become more rampantly in world wide economic life regarding as the complexity as well as the scale.