Study Of Financial Fraud Governance IPO

Currently our stock market financial fraud seriously, IPO financial fraudis intensified. In recent years, from the GREEN-LAND to theShengjingshanhe, to the Xindadi, Wanfu Biotechnology, not only the amountof fraud is amazing, but the fraud levels hit record highs. These behaviorsseriously affected China’s securities healthy development.How to effectivelyprevent the IPO financial fraud and protect the interests of investors, andpromote the healthy development of China’s securities market has become anurgent problem.By quoting fraud triangle factors theory, this article summarized the IPOfinancial fraud factors, which motivation or stress factors including theinterests of multi-body driving, local government performance pressure, tomeet market conditions pressure. The chances of factors includingexamination vulnerability, company lacking a reasonable corporategovernance structure, boosting of the intermediary organization. Then analyzethe basic means of IPO financial fraud in case form, including inflated income,virtual cut costs, inflated assets. On the basis of fraud motivations and theanalysis of the basic means, preventive measures to control IPO financialfraud will be divided into specific measures to establish a reasonable systemof corporate governance, strengthen the financial staff education, increasethe transparency of information to fully utilize the power of the media, theestablishment of a third-party platform for reading the prospectus, enhanceinvestor education, establish standards of stock repurchase, increase penaltiesfor intermediary organization, establish the compensation fund introducinginsurance mechanisms, improve delisting system, implement registrationsystem as soon as possible.