Case Analysis Of Government Intervention And Financial Fraud In Case Of Tianfeng Saving

With the rapid development of enterprises,the demand for funds has been further increased,but the development of China's capital market is relatively lagging behind,the source of enterprise funds,compared with bank loans,private funds and other ways,for the need of the enterprise development funds through the market,can effectively reduce the cost of capital,can make the enterprise wealth explosive growth,which has a great attraction to enterprises.However,China's listing requirements are strict,the performance evaluation requirements are high,and many companies do not meet the requirements of the listing will whitewash the performance of enterprises through financial fraud,part of the listed companies in order to make the company's performance is more excellent,attract more investors,at any cost through financial fraud whitewash business performance,At the same time,there are some operating performance barely even near the delisting of listed companies,in order to preserve its listing quota,select financial fraud in the way of performance fraud,to avoid delisting.In addition,some local governments have made excessive intervention to enterprises in the region in order to pursue their achievements,which is also a major cause of financial fraud in listed companies.In this paper,through the analysis of the case of Tianfeng saving of financial fraud,motivation from the perspective of government intervention of enterprise financial fraud,provide a reference for the prevention and control of enterprise financial fraud.In this paper,through the use of government rent-seeking theory,GONE theory,the hands of the government theory,information asymmetry theory,using normative research method,comparative analysis method,and through the combination of theory and case analysis,at the same time,combining qualitative analysis and quantitative analysis,the author makes a thorough and systematic review of research literature both at home and abroad,the financial information fraud cases in Xinxiang City Tianfeng energy saving Polytron Technologies Inc in-depth analysis,through the analysis of accounting information fraud cases of Tianfeng energy saving Polytron Technologies Inc,we can see that the local government of Xinxiang city for economic development in the region to consider,the number of Listed Companies in the region to pursue and the Henan provincial government assessment pressure on the number of local listed companies,Polytron Technologies Inc listed on Tianfeng energy saving work carried out someguidance and support,this also objectively contributed to the listing by Tianfeng saving financial fraud,the cause of Xinxiang's local government listed on Polytron Technologies Inc Tianfeng energy saving behavior intervention can be summarized as the following four points:(1)local government rent seeking.;(2)lack of effective restraint on the rights of local governments;(3)relatively independent development goals of local governments;(4)lack of effective supervision of local government behavior.Tianfeng energy saving Polytron Technologies Inc through the pursuit of fraud listed can be summarized as the following four points:(1)listed financing,reduce financing costs;(2)local government to promote,listing,access to government support;(3)internal control failure,lack of management rights constraints;(4)the securities market conditions are strict,whitewash business performance,fraudulent listing qualifications.In addition,the audit institutions in the audit process is disturbed the Xinxiang municipal government issued an inappropriate audit opinion,also contributed to the fraud of Tianfeng saving.Through the analysis of Tianfeng saving financial fraud cases,this paper argues that(1)to strengthen internal control of enterprises,improve the internal governance structure of enterprises,to reduce the enterprise through the construction of independence of independent directors to strengthen enterprise financial fraud opportunities;(2)broaden the financing channels of private enterprises,and reduce the motivation of enterprises' financial fraud by reducing excessive intervention by local governments;(3)increase the punishment of corporate financial fraud,make the enterprise obtain through financial fraud by revenue is far lower than the financial fraud penalties,to reduce corporate financial fraud by means of whitewash performance motivation.For local governments(1)change the concept of development and change the mentality and standard of performance evaluation based on GDP;(2)correctly positioning the relationship between local governments and enterprises,and the government's function in the market should change to the service-oriented government;(3)improve the supervision and restriction mechanism of local governments,thereby reducing government interference in enterprises,and allowing enterprises to develop in a normal and orderly market environment.