Insights

As corporate fraud methods become increasingly concealed, traditional detection methods relying on financial statements are often lagging and limited in effectiveness. How can dynamic business networks be used to root out hidden “rotten apples”? Zhao Jianliang (Leon) from the School of Management and Economics (SME), The Chinese University of Hong Kong, Shenzhen (CUHK-Shenzhen), together with Du Wei and Xu Wei from the School of Information, Renmin University of China, co-authored the paper How a Rotten Apple May Spoil the Barrel: Corporate Fraud Detection via Dynamic Business Networks. This study proposes the NetDetect framework, which provides a precise “early radar” for identifying corporate fraud by mining structural information and temporal evolution patterns within business networks. Recently, this research was published in MIS Quarterly, a top international journal in management.