Evaluation of Management Fraud Risk Based on Grey Correlation Model —Evidence from China’s ST Companies

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/).

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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  -