Evaluation of Management Fraud Risk Based on Grey Correlation Model —Evidence from China’s ST Companies
Authors
Zexia Wang, Jing Xiang, Zhaoyun Ye
Corresponding Author
Zexia Wang
Available Online January 2014.
- DOI
- 10.2991/gecss-14.2014.79How to use a DOI?
- Keywords
- management fraud, grey correlation model, risk score, the optimal threshold
- Abstract
This paper evaluates risk of management fraud based on the grey correlation model. In this paper, 442 samples are applied to build index system according to the fraud triangle theory; 68 ST companies with motivation of preventing delisting are chosen as training samples to calculate risk scores; Another 20 companies have been chosen to test the effect of the model recognition. Research results show that the optimal threshold to identify fraud and non-fraud company is 0.465, comprehensive recognition rate of testing samples is 85%.The grey correlation model has a good performance in evaluating fraud risk.
- Copyright
- © 2014, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Zexia Wang AU - Jing Xiang AU - Zhaoyun Ye PY - 2014/01 DA - 2014/01 TI - Evaluation of Management Fraud Risk Based on Grey Correlation Model —Evidence from China’s ST Companies BT - Proceedings of the 2014 International Conference on Global Economy, Commerce and Service Science PB - Atlantis Press SP - 315 EP - 320 SN - 1951-6851 UR - https://doi.org/10.2991/gecss-14.2014.79 DO - 10.2991/gecss-14.2014.79 ID - Wang2014/01 ER -