The Research On Financial Fraud Problem Of Agricultural Listed Companies

Financial fraud of listed companies has always been a hot issue at home and abroad,but also a stubbornissue.Looking back at the classic financial fraud cases of agricultural listed companies,many of them are local leaders,enjoying the benefits offered by the government.Because of the particularity of agricultural industry,the proportion of financial fraud in agricultural listed companies remains high among many fraud incidents that have been exposed.There were the " Guangxia incident"and the "Lantian fraud case" in the past,and also in recent years there have been"fraudulent listing cases of Green-land" and "the first share in the gem board "-Wanfu Biotechnology and so on.In the drive of large economic benefits and ultra-low fraud costs the financial fraud agricultural listed companies has never stopped.Why is the financial fraud of agricultural listed companies unable to be effectively controlled today when the regulatory system is increasingly perfect?It's worth investigating the reasons.At the same time,how to effectively prevent the financial fraud of agricultural listed companies,and optimize the capital market environment is also worth deep thinking.Based on the research of agricultural listed companies and the theory of risk factor theory,this paper analyzes the causes of financial fraud in agricultural listed companies based on preexisting research,and puts forward the prevention suggestion.Firstly,the article selects nine agricultural listed companies that have been publicly punished by the CSRC in the period from 2012 to 2016 as sample objects,analyzes current situation of fraud in the aspect of quantity,scale,increase and decrease etc.And it finds out that compared with other industries,agricultural listed companies have those trait,such as high frequency,great scale,benefit far greater than the cost,and so on.Secondly,based on the theory of risk factor,this paper analyzes the causes of financial fraud of agricultural listed companies from five aspects:motivation,moral quality,opportunity,possibility of fraud being discovered and the nature and severity of punishment after fraud is discovered and finds out that the particularity of production and operation,policy support and local protectionism provide enterprises with opportunities for fraud;deficiencies in governance mechanisms,difficulties in auditing,lag in investigation and punishment,and protection of intermediaries make fraud less likely to be detected;existing penalties are not sufficiently deterrent;the agricultural listed companies have the demand for financing and face pressure and performance pressure from the securities market and management has a fluke mentality and a weak sense of law.The combination of five factors above leads to financial fraud.Thirdly,by sorting out and analyzing the fraud methods of the samples and on the basis of profit,the means of fraud are divided into direct manipulation and indirect manipulation,and then it selects HACL as the object of case analysis.Finally,based on the previous analysis of the reasons of fraud in agricultural listed companies,some preventive countermeasures are put forward from the two angles of prevention and management.