Study Of Financial Fraud In Wanjiang Logistics Company Based On Corporate Governance

Since the reform and opening up,China's economic and financial fields getting more and more successful.At the same time,there is an increase in the amount of China's Listed Companies in the capital market,More and more investors are turning their attention to the capital market.in most case,investors according to the relevant information published by the listed company to determine whether the company has investment value.However,financial fraud appear repeatedly so that investors realized it is not feasible to determine the investment value only by financial information;today,investors are generally based on the overall situation of listed companies,to decide whether to invest.Therefore,the corporate governance mechanism of listed companies has become a more critical issue.From the perspective of corporate governance to investigate the generation and management of financial fraud,we can effectively curb the occurrence of financial fraud.Which is of great significance to improve the development of China's capital market.This paper gives a detailed combing and summarizing the related literature at domestic and abroad then using the method of literature review and theoretical researches on the relationship between corporate governance and financial fraud.Putting forward the effect of the external governance mechanisms and the internal governance the structure of financial fraud events.the external governance mechanisms including the government,banks,institutional investors,intermediaries and internal governance including the shareholders,directors,supervisors and managers.In the part of case analysis,the paper takes the large-sized fraud case of wanjiang company which was exposed in September 2014.Focus on the analysis of wanjiang company fraud motivation,fraud means,fraud incident handling results.It is not difficult to find that the occurrence of wanjiang fraud and its deteriorating development are closely related to the unsound corporate governance system.The results of the study showed that under the current institutional environment of China and the capital market background,the ownership concentration,the board of directors and board of supervisors,as well as the characteristics of the legal environment,the role of government and intermediary institutions,creditors and other factors have varying degrees on the impact of financial fraud.Finally,aiming at how to improve the mechanism of corporate governance to reduce the occurrence of financial fraud,puts forward some policy suggestions including improving the legal environment,optimize the agency auditquality,Standardize the cooperation between banks and enterprises,perfecting the construction of internal control as well as improving internal governance and so on.