Research On The Causes And Preventive Measures Of Financial Fraud Of New Third Board Enterprises

The financial fraud of listed companies has hindered the healthy operation of China's capital market,and it has played a negative role in the development of China's securities market.Therefore,financial fraud has long been a topic of concern to relevant researchers.However,most experts and scholars have focused their attention on listed companies on the Main Board,the SME Boards and the GEM market,and have less analysis on the financial fraud of listed companies in the National Equities Exchange and Quotations(NEEQ).As an important part of the multi-level capital market,the development of the NEEQ has played a positive role in the operation and stable development of China's capital market.And because the NEEQ has not been established for a long time,and the relevant system is not perfect,so that in recent years,the financial fraud of China's NEEQ enterprises has continued to occur.This article discusses the timeliness of the financial fraud cases of the NEEQ companies,and to a certain extent can make suggestions for the development of the NEEQ in China.From the perspective of the NEEQ,combined with the characteristics of the market differences between the NEEQ and the Main Board,the SME Boards,this paper selects Huaxin Energy Company,which has the largest amount of financial fraud in the NEEQ,as the case study object for analysis and research.Explore the causes of corporate financial fraud and related preventive measures and other related issues.This article combines the literature research method and the case analysis method in the case discussion process.The literature section introduces the definition and theory of financial fraud,and introduces the basic characteristics,development status and relative comparison with other markets of the NEEQ.The case section first introduces the basic situation of Huaxin Energy Company and the process of financial fraud,etc.;secondly,analyzes the financial fraud incident of Huaxin Energy from three aspects: the cause of fraud,the means of fraud and the impact of fraud;finally,this article analyzes the case of financial fraud of Huaxin Energy,Combining its various adverse effects on itself,the NEEQ and investors,it proposes prevention and governance measures from within the enterprise,the NEEQ market,and intermediaries.