| In the domestic and international capital markets,the phenomenon of financial fraud has occurred from time to time,such as the Enron in foreign countries,the WorldCom event,and the new land of China,Xintai Electric and other events,which have caused great harm to the domestic and foreign capital markets.In 2017,there were 20 cases of financial fraud in China.Although the financial fraud company accounted for a small proportion of listed companies,it caused great harm to the capital market.Therefore,it is of great significance to find out the causes of financial fraud in listed companies and analyze the means of financial fraud in listed companies.Based on the review of related literatures at home and abroad,this paper introduces the theory of financial fraud motivation:iceberg theory,fraud triangle theory,GONE theory and risk factor theory,and explains the reasons for using GONE theory as the case study as well as a detailed study of Yabaite cross-border financial fraud cases.Yabaite used the fictitious overseas engineering projects,Virtual building materials export trade and fictional domestic building materials projects to conduct cross-border financial fraud for performance needs,becoming the first case of cross-border financial fraud in China.Based on GONE theory,this paper analyzes the motivation of Yabaite financial fraud from four angles of greed,opportunity,need and exposure.Yabaite's financial fraud mainly includes:major shareholders use power for personal gains,Enterprises pursue high profits;monopoly,internal control is invalid,enjoy cross-border tax policy preferences,cross-border supervision difficulties;in order to increase the competitiveness of the group,achieve performance commitment and financing needs;the market supervision mechanism is not perfect,the external audit institution lacks independence,and the cost of fraud is low.From these four perspectives,the strategies to prevent cross-border financial fraud are proposed. |
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