A Study On The Financial Fraud Prevention Of Listed Companies Based On GONE Theory

In recent years,the financial fraud of listed companies frequently happened in the securities markets,such as xin tai electric,green earth,kunlun machine malignant.These financial fraud occurred frequently,which seriously affected the normal order of securities market,forcing countless investors interests be damaged,severely corruptted public morals and values of integrity,which has brought great harm to the society and the public and which has to be thought-provoking.The reasons for the fraud of listed companies can be found in both internal and external factors.Internal factors include the poor management,defects in governance structure,lack of internal control,ineffective internal audit,etc.Outside,there are some factors such as poor development of economic environment,lack of the independence of certified public accountants,and ineffective government and market supervision.Therefore,in order to comprehensively analyze and study the financial fraud of listed companies,we need to start from both internal and external aspects.This article selects the GONE theory as theoretical basis of research.The theory holds that when a company commits financial fraud,there are usually four factors: greed,need,opportunity and exposure.Among them,greed and need are respectively expounded from the perspective of the influence of personal moral quality on the fraud behavior and the company,constituting the internal motivation.Opportunity and exposure respectively explain the motivation of the fraud of listed companies from the perspective of internal governance and external supervision,which constitutes the external motivation.Since the GONE theory mainly analyzes the motivations based on individuals themselves and external environment,which is more consistent with the formation mechanism of financial fraud.So,this theory is more scientific and reasonable.At the same time,due to the discussion of greed and exposure will inevitably involves the accounting ethics related to greed,honesty and luck,so this article will also carry on the appropriate penetration analysis to this part.On this basis,this paper selects the latest financial fraud case in China,jiadian stock,as the research object,and systematically reviews the whole fraud process of the company.Jiadian stock is the leading enterprises in the domestic electrical industry.In November 2017,the Securities Regulatory Commission(CSRC)found that there was an increase in profits of200 million yuan in the period 2013-2015.Mainly,the chairman and general manager of Jiadian stock,Zhao Ming directed the financial director Liang Xihua to make a certain adjustment of the accounts.Secondly,this paper will use accounting knowledge to make certain recognition of the fraud,and the detailed analysis of the means of fraud.Then,based on the theory of GONE and financial fraud,this paper will analyze the motivation of the company from the four aspects of "greed","opportunity","need" and "exposure".Finally,starting from the four dimensions of GONE theory,this paper will put forward the corresponding solution measures and countermeasures to improve the other institutions of the internal environment and governance structure of listed companies,in order to give some reference to prevent the happening of the fraud.