A Case Study Of Yabaite Technology’s Financial Fraud Based On GONE Theory

In recent years,with the rapid development of the capital market,the stock market has occupied an important position in the field of investment and financing.The healthy and effective development of the stock market has also become one of the foundations for the faster and better development of the capital market.However,the problem of financial fraud of listed companies has become the biggest obstacle to the healthy development of stock markets in various countries.Although China’s capital market started late,it has developed rapidly.In order to seek benefits,listed companies will inevitably use financial fraud to achieve their goals.Financial fraud will not only reduce the company’s own value,damage investors’ interests,but also seriously disrupt the order of the capital market and affect the healthy development of the market economy.Therefore,it is of great practical significance to study the causes of listed companies’ fraudulent behaviors,identify means of fraudulent behaviors and propose governance measures.GONE theory is one of the classic theories to study the causes of financial fraud.The theory attributed the occurrence of financial fraud in listed companies to four factors: greed,demand,opportunity and exposure.The theory mainly analyzes the causes of fraud from individual fraud actors and their organizational environment,which is more in line with China’s increasingly complex financial fraud situation and is more scientific and rational.In view of this background,this article uses the case study method to select Jiangsu Yabaite Technology Co.as the case study object,choose GONE theory as the basis,and conduct research on the causes of Yabaite’s financial fraud from four aspects: greed,opportunity,need and exposure analyze and propose corresponding measures for each cause,which can provide some reference for preventing financial fraud of listed companies in the future.The research content of this article consists of five parts.The first part is the introduction,which elaborates the research background and significance of this article,collates the relevant literature on the causes,means,identification and prevention of financial fraud at home and abroad,and introduces the research methods of this article.And innovation.The second part is an introduction to related concepts and theoretical foundations.It accurately defines the concept of financial fraud and interprets the relevant theoretical foundations of fraud.It mainly includes two-factor theory,triangle theory of fraud,GONE theory,and economic theory.Comparative analysis of other theories.The third part mainly introduces the basic situation of the case target Yabaite Technology Company,and reviews the history of financial fraud.The fourth part analyzes in detail the causes of financial fraud and the specific methods adopted by Yabaite from four perspectives: greed,opportunity,demand,and exposure.It can be found that the management of Yabaite is incomplete in the company’s internal governance structure and overseas auditing.Difficult opportunity factors and the need to pursue self-interest,avoid compensation for high performance commitments,and broaden financing channels,rely on loopholes with low exposure costs and lax external regulations to achieve fraud through fictional overseas engineering projects and domestic and foreign building material transactions.The purpose is to analyze the adverse economic consequences of Yabaite’s financial fraud from the company’s own and stakeholders’ levels.The fifth part puts forward targeted solutions based on the causes of fraud in Yabaite.The research in this paper can serve as a warning for other listed companies that intend to commit fraud,and it has certain reference value for preventing financial fraud.