Research On Financial Fraud Of Listed Company Basing On GONE Theory

Since the 1990s,the malignant cases of financial fraud emerge frequently in China's capital market.Many listed companies counterfeit their financial conditions in a variety of ways.The early cases included the profits exaggeration of Lam Tin shares,the false financial statements of Joan MinYuan and Guangxia.Recent examples included the failure in internal control of Green Earth,the GEM fraud of Wanfu,and the delisting punishment of Boyuan Investment.The financial fraud of the listed company not only seriously affects the company's reputation but also damages the interests of investors,leading to the losing confidence in the capital market.In addition,financial fraud also severely interferesthe stability of the capital market and hinders the healthy development of the economy.In order to achieve their own interests,listed companies mislead the small investors by presenting the inflated assets and income.It is imperative to maintain the stability of the capital market,strengthen the prevention and management of financial fraud,and protect the interests of all stakeholders.Based on the literature research,this paper analyzes four factors(greed,opportunity,need,and exposure)of Boyuan Investment's financial fraud by using the GONE theory.Then effective suggestions are put forward on the prevention and management of financial fraud.This paper first reviews the literature at home and abroad,expounds the research background and research significance,and summarizes the main contents and research methods of the article.Secondly,the basic theory of financial fraud is expounded,such as the concept of financial fraud,the characteristics,the harm and the common means of fraud.Then it focuses on the research theory of financial fraud:GONE theory,iceberg theory,triangle theory and risk factor theory.Then,based on the theoretical basis of GONE theory,this paper analyzes the financial fraud of Bo Yuan Investment Company from the four elements of "greed,opportunity,demand and expose".Finally,based on the analysis of GONE theory under the framework of improving the moral environment,reduce the chance of fraud,reduce bad demand and improve the regulatory mechanism in four areas to prevent and control the financial fraud of listed companies.