The Research On Financial Fraud Behavior Of Listed Companies Based On CRIME Five Factors

With the rapid development of the capital market and the continuous expansion of capacity,the financial fraud cases of listed companies have also explosively increased.In 2018,the administrative penalty issued by the CSRC was as high as 310.This behavior not only caused the company's image to plummet,it even faced bankruptcy and liquidation,but also severely hindered the normal operation of the stock market and undermined the confidence of investors in the secondary market.How to identify and manage the financial fraud of listed companies is an urgent problem to be solved in the current capital market.Since the beginning of 2019,"White Horse" listed companies have been thundering,and the financial fraud of Kangdexin Composite Materials Co.,Ltd.(hereinafter referred to as Kangdexin has surfaced.The CSRC has determined that its financial information was suspected of being false in 2015-2018.Kangdexin is one of the leading companies in the polymer membrane material industry and has always been a star enterprise respected by the market.The fictitious profit in four years has reached 11.9 billion,exceeding all profits since listing,damaging the interests of 150,000 shareholders and affecting the society.Caused an extremely adverse effect.The previous analysis of financial fraud cases is not rare,but there is not much research using CRIME theory as a framework.This article takes a combination of theoretical norms and case studies to analyze in depth the financial fraud of listed companies.The full text uses the CRIME five-factor theory as a writing framework.It first summarizes the current status and characteristics of financial fraud in listed manufacturing companies from 2015 to 2019,and also shows the applicability of the analysis model;then introduces the new financial fraud incident of Kangde.From the beginning to the end,continue to adopt the CRIME five-factor theory to analyze the implementers,specific means,motives and internal and external supervision of this fraud event,and put forward suggestions for prevention from the results of the fraud event in order to curb the financial fraud event occur.The research in this paper found that:(1)Financial fraud in listed manufacturing companies usually uses multiple fraud methods at the same time,and it lasts for a long time,and the regulatory punishment is lagging.(2)In financial fraud,it is mostly dominated by executives such as actual controllers,and it has the personal traits of risk preference,overconfidence and the pursuit of honor;coupled with the concentration of equity,it gives it the possibility of implementing fraud.(3)The long-term high-equity shareholding pledge of the controlling shareholder will lead to excessive investment behavior of itself and the listed company,resulting in a tight capital chain and aggravating the motivation for financial fraud.(4)The governance mechanism of listed companies with financial fraud is not perfect,and the lack of external supervision has led to a low probability of detection and a low punishment.This is also where the current system of our country needs to be adjusted.The research significance of this article lies in:(1)In theory,the less used CRIME model is used to comprehensively analyze the case of financial fraud,and the counterfeiter is included in the analysis,while supplementing the relationship between the long-term high shareholding pledge of the controlling shareholder and financial fraud.(2)In practice,through the analysis of the fall of star enterprises,it can inspire other companies to abide by market rules,and the regulatory authorities should strengthen supervision.At the same time,small and medium shareholders can improve their ability to identify risks,regulate market order,and protect the interests of small and medium investors.