Proceedings of the 2014 International Conference on Global Economy, Commerce and Service Science

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
https://doi.org/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.
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Proceedings
2014 International Conference on Global Economy, Commerce and Service Science (GECSS-14)
Part of series
Advances in Intelligent Systems Research
Publication Date
January 2014
ISBN
978-90-78677-96-3
ISSN
1951-6851
DOI
https://doi.org/10.2991/gecss-14.2014.79How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

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  - 2014 International Conference on Global Economy, Commerce and Service Science (GECSS-14)
PB  - Atlantis Press
SN  - 1951-6851
UR  - https://doi.org/10.2991/gecss-14.2014.79
DO  - https://doi.org/10.2991/gecss-14.2014.79
ID  - Wang2014/01
ER  -