The Impact Of Financial Fake And Government Intervention On Corporate Value

Currently in our country there are a lot of false listed companies, which are not good enough to support the performance of listed shells. Through financial fraud and other means to achieve the purpose of listing, they get financing in the capital market, and this for the vast number of investors is a kind of cheating. The declining performances of such enterprises leads to the fall in the value of the enterprise and finally to the edge of delisting. For various reasons the government will often try to intervene, but the influence of such interventions and the results are tremendous. This article adopts the method of case analysis through analyzing the impact of the value brought by the financial fraud of listed companies and government intervention. Taking Yunnan green earth biological technology co., LTD. (hereinafter referred to as "green earth") as the case, this study gives a deep insight into green earth--a Yunnan province forestry pioneer enterprise--to see how it makes use of financial fraud to get listed, drills loophole capital markets, violates laws and regulations, and eventually faces delisting crisis. Then how it avoids its crisis and "regains profitability" through the government intervention. This article analyzes the case of enterprise operation, utilizes the means such as data analysis to find out the main factors influencing the value of listed companies, and further analyzes internal and external governance structure and the imperfection of the investment and financing market. Through analyzing financial fraud means and the impact of government intervention and providing the financial fraud and government intervention’s influence on the listed company and analysis of this phenomenon, this study tries to propose solutions and methods and ideas and is dedicated to plays a reference role for the improvement of future enterprise value and securities market regulation.