Research On Financial Fraud Induced By Gambling Agreements

At present,China's capital market in the rapid development of the same time,there is still a single investment market level,financing pattern is poor,small and medium enterprises financing problems.In the traditional way of financing more difficult circumstances,private equity financing to become the first choice for many corporate finance.However,due to the existence of information asymmetry between the two sides of investment and financing,investors to protect their own investment income and risk,encourage the financing side to improve performance,signed an investment agreement when the introduction of the valuation adjustment mechanism.Valuation adjustment mechanism in China's venture capital has been more performance in recent years,the rapid expansion of private equity investment institutions make the whole market varies greatly.In practice,some companies get financing for the gambling,access to rapid development,there are many companies due to gambling failure caused by the implementation of difficulties.In addition,some investors will treat the valuation adjustment mechanism as a "hedge against aquaculture" investment hedging tool,in the agreement,by forcing or luring the management of the financing side of the agreement signed the design of the agreement,so that it is essentially a "Investment trap".Some of the relevant beneficiaries of the company are eager to win the financing of gambling under the pressure of financing,through the beautification of performance,manipulation of profits and other means to whitewash financial statements for fraud.On the valuation adjustment mechanism as a financial tool,a contract,in essence,there is no right or wrong.In the face of "can also carry the boat can also cover the boat," the valuation adjustment mechanism,only scientific and rational use,in order to make it play a useful role in the investment and financing parties.This paper mainly uses the combination of theoretical analysis and case analysis to study the motivations and means of financial fraud caused by the valuation adjustment mechanism,and reveals the aspects of the use of related transactions,adjustment of income,cost,profit and information disclosure in the process of equity financing of Chinese enterprises The means of accounting fraud.In the case analysis part,we choose H company to systematically analyze the motives,means and results of the financial fraud caused by the valuation adjustment mechanism.It is suggested that the internal control and perfect external supervision mechanism should be taken to prevent and recognize the enterprises' financial fraud,hoping through the case analysis and found that China's venture capital market in the current problems,expect the results of the study will help China's securities market reform.