A Case Study On Financial Fruad Of "Xintai Electric"

It is often seen that the financial fraud caused by various reasons is common,and the tendency become even more violent for more than 20 years in our capital market.The impact of financial fraud on the society is huge.The regulatory authorities have issued many policies to prevent financial fraud.But from the perspective of frequent fraud in the motherboard of Yin Guangsha,small plates of Green Earth and the gem of Wanfu Biotechnology,the policy did not play a good role.Xintai electric(300372.SZ),landing on start-up board on March2014,was also found double fraud in IPO and annual report in July 2015.With the further improvement of the delisting rules in start-up board in 2014,Xintai electric was the first enterprise to be forced to withdraw A shares market.The financial fraud of Xintai electric gave a head-on blow on the capital market,investors and intermediaries.There was an irreplaceable significance on identification of the company’s financial fraud in the entire process,analysis of the reasons and the impact of the Xintai electric financial fraud and the development of the securities market.In this paper,the methods of literature and case study,based on financial fraud GONE theory for the tool,in order to "xin tai electric" of what actually happened on financial fraud case,from what happens to the fact that "greed-opportunities-need-exposed" four aspects to probe its motivation and the impact of the financial fraud,then found the phenomenon and the analysis of the reasons put forward the corresponding Suggestions.First chapter is the introduction mainly introduces the research background and research meaning,for each stakeholder governance of financial fraud is very necessary,at the same time,describe the financial fraud motivation and related theoretical basis and a thinking of writing framework of this article;The second chapter mainly discusses the xin tai electric financial fraud by a detailed description of the process,as well as the current business situation;The third chapter is mainly to financial fraud motivation and the impact analysis,comparative analysis before and after the financial fraud,and in the same industry enterprise’s financial data,found that enterprise if not fraud,were unable to successfully enter the capital market,and then using the theory of GONE(" greed-opportunity-need-expose " theory)to analyze financial fraud motivation and influence;The fourth chapter,according to the previous chapter analysis the reasons and puts forward the corresponding improvement measures,efforts for the majority of investors to provide a good investment environment.Process of comprehensive of the incident happened at the end of the paper and the analysis of its corresponding conclusion,that the occurrence of financial fraud fully followthe theory of "GONE",in the theory of the four factors under the action of financial fraud,financial fraud and a large part of the reason is based on product market competition and lack of development funds,if want to completely eliminate the occurrence of fraud,must be coming up from the source "governance","xin tai electric" event also equally intermediary institutions and the government a chance to ponder.