Research On Financial Fraud Of IPO Companies In China

Successfully entering the capital market is of great importance to well-run companies and corporate shareholders.China's capital market has the characteristics of efficient and fast financing.Once a company is successfully listed,it can not only raise huge amounts of funds through initial public offerings,it can also broaden follow-up financing channels,increase corporate value,and expand market share;at the same time,the company's shareholders can also By landing on the capital market,we can realize the rapid appreciation of the value of human wealth.Based on the tremendous wealth and influence brought about after listing,companies that have not met the requirements of the first-line management method,such as subject qualifications or performance indicators,often resort to financial fraud to achieve the purpose of listing.The decline in performance of financial fraud companies after listing has brought losses to investors and disrupted the healthy development of the capital market.At the beginning of the 21 st century,a series of IPO financial fraud incidents such as the United States HPL Technology Corporation,Hong Kong Hong Liang International,and the China Green Earthland caused a heavy blow to domestic capital markets worldwide.With the acceleration of IPO audits and meetings in China,the management of increasingly sophisticated fraudulent means,and the cornerstone of sound securities market credit becomes more and more important.Some studies have shown that corporate governance structure and policy supervision system are the main factors that affect financial fraud.IPO company financial fraud usually uses policy loopholes in the context of market information asymmetry,and mainly uses inflated revenue and inflated assets.Manufacture false financial statements so that the company's financial indicators meet the conditions for listing.Only from the inside and outside at the same time,we can effectively prevent financial fraud.Therefore,on the basis of summarizing the research literature on financial fraud at home and abroad,this article first,according to China's stock issuance system,statistics the status of domestic IPO companies being punished for financial fraud,financial fraud measures based on financial indicators and non-financial indicators,and summarizing IPO companies.The commonality of financial fraud.Then the case of Xintai Electric was introduced.Based on the theory of risk factors,through the analysis of the means of fraud,the cause of Xintai Electric's financial fraud was explored.It was concluded that shareholders' executives had large stock arbitrage income,and the company's financing income was large.Failure of diligence,due diligence,and imperfections of laws and regulations.In short,the causes of IPO financial fraud are various and the methods of financial fraud are varied,and they are objective,universal,latent,and controllable.In order to purify the capital market,while accelerating the IPO progress,it is not only necessary for the company itself to improve the effectiveness of corporate governance,but also for the intermediary agencies to improve professional competence,the government regulatory agencies to improve the legal environment,strengthen the multi-level supervision system and improve the delisting and Efforts are made in the payment system to protect the interests of investors so as to promote the development of a stable state.