Case Study On Financial Fraud Of Xinjiang Chalkis Company

With the rapid development of Chinese securities market in recent years,the information disclosed by listed companies is the key factor for investors to make investment decision,especially financial information and its authenticity has aroused great concern from all walks of life.However,according to the information disclosed by China Securities Regulatory Commission,financial fraud of listed companies in China has become increasingly rampant,the entire capital market feels shocked by the more ways,longer time and bigger amount of financial frauds.The faked financial information can not reflect the real operation performance of listed companies and it has already distorted the real value of stocks.What's more,it causes significant misleading to investors,especially small and medium-sized investors,and it causes irreparable damage.It also interferes with the healthy and stable development of our capital market.Therefore,nowadays,with the rapid development of China's capital market,it is urgent to study the causes of financial fraud and how to prevent financial fraud of listed companies.It is also urgent to help investors protect their own interest.Accordingly,it has great theoretical and realistic significance to analyze cases of financial fraud.The thesis uses the method of combining the theoretical analysis with case analysis.The theoretical part introduces the four drivers of financial fraud and statistical analysis of the fraud measures of listed companies in our country present situation,and then the thesis expounds the harm of financial fraud.First of all,the case study part briefly introduces the basic situation and historical financial data of the past years of XINJIANG CHALKIS CO.,LTD,and then it also introduces the process and the penalty results of financial fraud in the case of XINJIANG CHALKIS CO.,LTD.Second,the thesis analyzes the financial fraud from the drivers,the measures,the consequences and market reaction of the four aspects of XINJIANG CHALKIS CO.,LTD.Including,in particular,the theory of risk factors is used to explain the motives of financial fraud.By analyzing,the thesis found that: XINJIANG CHALKIS CO.,LTD for avoiding delisting,constructed six years of financial fraud.By hiding the associated transactions and transferring posting through non-affiliated enterprises,it made fictitious purchase and sale business over the years,adjusted profits in order to make annual financial report disclosure of false records,misleading statements or major omission from 2006 to 2011.Finally,combined with case analysis,the thesis put forward the inspiration and reference for all parties.According to the five elements of the theory of risk factors,the thesis put forward the governance countermeasure one by one.The thesis made some suggestions on controlling the individual risk factors in the aspects of the personnel moral and the operating management of listed companies.For internal control of listed companies,external audit institutions and the punishment of fraud,the thesis made the relevant suggestions to control the general risk factors.