Analysis of Corporate Financial Fraud Pathway Factors and Pathway Identification Research-Based on ISM-MICMAC Model

Abstract

In recent years, China's listed companies in various fields have frequent financial fraud in the market—this paper first constructs five dimensions of corporate financial fraud factor identification and extracts twenty representative indicators. Secondly, the interpretative structural model is used to determine the hierarchical relationship between the influencing factors. Then, the cross-influence matrix multiplication is used to analyze the driving force and dependence of each influencing factor, and the dependence-driving force diagram is drawn to verify the rationality of the hierarchical relationship between the influencing factors in the interpretative structural model. Finally, based on the results of the ISM-MICMAC Model, the conclusions are drawn, and suggestions are put forward according to the actual situation. This paper analyzes the causes of corporate financial fraud, explores the means of corporate financial fraud, and constructs a framework for identifying financial fraud, which has specific reference significance for the identification, prevention, and governance of corporate financial fraud in China.