A Case Study Of Related Party Transaction Fraud Under Inslder Control In Wenzhou Kangning

Since the reform and opening-up in 1978,40 years have passed since then.China's economy has been developing rapidly and has made remarkable achievements all over the world.After the Millennium,in the 21 st century,China's economy has maintained a relatively rapid growth rate,and the development of domestic capital market is in full swing.The phenomenon of insider control has existed since the birth of modern enterprise embryonic form.Because of the separation of ownership and management rights of equity-based enterprises,the interests of investors and managers are not consistent,which leads to the insider control of management for private interests.However,there are also insiders who are shareholders and managers at the same time.Enterprise insiders use position convenience and special information access channels to transfer the interests of enterprises through related party transactions and other means,which not only causes the distortion of financial information of enterprises,but also infringes on the rights and interests of small and medium shareholders.In order to strengthen their own strength and expand the scale of enterprises,IPO is a very good financing way.Wenzhou Kangning succeeded in listing H shares in2015,and now wants to list A shares,but was rejected by the SFC.Based on whether the A-share IPO of Wenzhou Kangning is cited,this paper first analyses the background and significance of this study,and introduces the content of this study,as well as the research methods,innovations and shortcomings.Secondly,it studies the literature on insider control and related party transactions by scholars at home and abroad,and reviews the relevant literature,combing and summarizing the relevant theoretical basis.Thirdly,the case of related party transactions under the control of Wenzhou Kangning insiders is reviewed,and the related party transactions under the control of Wenzhou Kangning insiders are briefly introduced.Then,the related party transactions,the means of related party transactions,the causes of related party transactions and the impact of related party transactions under the control of Wenzhou Kangning insiders are analyzed.Finally,in view of the causes of related party transactions under the control of insiders in Kangning,Wenzhou,specific preventive suggestions are put forward from the aspects of internal governance and external supervision.The preventive suggestions can effectively prevent the emergence of insider control to a certain extent,and have a certain reference significance for the operation and management of other enterprises.