Research On The Financial Fraud Of The Listed Companies Of GEM

From the 1990 s to now,during this 20 years,China’s securities market has developed rapidly.If the company is listed on the stock market,then it can get a large amount of funds to enhance the company’s image,to lay the foundation for further development.Due to China’s securities market started late,the relevant system is not perfect,the corresponding punishment is not strong,so financial fraud in the listed companies occurs sometime.In 2009,China’s GEM was formally established in Shenzhen stock market,which still cannot escape the problem of financial fraud.For the frequent occurrence of the financial fraud problems,only to analyze the reasons and means of fraud in detail,it can put forward the governance measures more effectively,so it can make our country’s securities market develop towards benign and healthy direction.This paper focuses on the problem of financial fraud of GEM.First of all,using the literature research method,it sort out the financial fraud related literature in domestic and foreign from the financial fraud motivation,identification,means and governance four aspects.Secondly,the paper analyzes the characteristics and motives of financial fraud of GEM listed companies.Then it uses the case analysis method,taking Xin Tai Electric as an example.Xin Tai Electric was punished by SFC because the problem of financial fraud.And Xin Tai Electric became the first one to be demand to exit the GEM in 2016.Then it combines with external information,the enterprise itself and its financial data,analyze various anomalies in detail.The aim is to identify signs of financial fraud.Finally,it analyzes the motives of financial fraud with risk factor analysis method.This paper takes Xin Tai Electric as an example,according to the analysis of the reasons of Xin Tai Electric financial fraud.It aims to offer some suggestion about how to control financial Fraud in GEM,from the strengthening of moral construction,eliminating the motives of fraud,reducing fraud opportunities,increasing the likelihood of fraud exposure,increasing the penalties for fraud five aspects.This paper concludes the following conclusions: First,the cause of financial fraud of GEM listed companies is the same as the main board market,but has more particularly unique characters,the analysis of these special characters is the value of this article;Secondly,financial fraud can be identified before theexposure,it can be identified from the external information,the enterprise itself and its financial data;Finally,the prevention and control of the financial fraud of the GEM requires a great deal of joint efforts,in which the establishment and improvement of the relevant system is the most fundamental solution.