A Study Of Financial Fraud Causes And Prevention Of Kunmingjichuang Based On The Perspective Of Corporate Governance

Financial fraud of listed companies has always been considered as one of the hidden dangers affecting the healthy development of China's securities market.Although financial fraud originates from many factors,improving the corporate governance of listed companies is one of the important ways to reduce the possibility of financial fraud.For example,it is necessary to alleviate the "sequelae" of corporate governance structure brought about by the restructuring of state-owned enterprises in China,such as the absence of owner and the problem of insider control.When the chain of principal-agent is broken,the internal supervision of listed companies is virtual.Phenomena have also become common.At this time,the authenticity of accounting information can easily become a victim under the direct instruction of company management for specific purposes.In addition,through the statistics of financial fraud violation records from 2013 to 2015,it is found that more than half of the financial fraud records come from A-share listed companies of state-owned or state-controlled enterprises.it is found that more than half of the A-share listed companies with financial fraud belong to state-owned or state-owned holding enterprises.As a result of serious financial fraud,Kunming Machine Tool,which has become "the first share of withdrawal from the market in Yunnan Province",also has the phenomenon of insider control under the principal-agent relationship:under the planning and organization of the then chairman,the authenticity of the company's accounting information has become a victim.Based on this,the research questions in this paper are:what are the causes of financial fraud in listed companies from the perspective of corporate governance,and how to prevent it?This paper will take the above questions as the starting point and take Kunming machine tool as the case to answer the research questions.The idea of this paper is to take Kunming Machine Tool as a case study.Starting from the four main dimensions of corporate governance:ownership structure,board of directors,board of supervisors and management,and based on principal-agent theory,incomplete contract theory,information asymmetry theory and management defense theory,the paper combines normative research method with case study method to develop finance from the perspective of corporate governance.The causes of business fraud are analyzed,and the corresponding preventive measures are put forward according to the causes of financial fraud of listed companies,so as to finally draw the conclusion of this paper.This paper finds that first,the ownership structure of the actual controllers of listed companies with"one share is dominant" and a high proportion of state-owned shares is liable to lead to financial fraud.In addition,the "going through" of the shareholders'meeting creates more opportunities for financial fraud.Secondly,the board of directors lacks powerful external directors'checks and balances besides controlling shareholders,and the malfeasance of internal supervision such as independent directors,audit committee and internal audit institutions also creates an environment for financial fraud;thirdly,the weak supervision of "trusted supervisors" and the low proportion of staff supervisors on board of supervisors also provide a hotbed for financial fraud.The core executives appointed by controlling shareholders are more likely to increase the possibility of financial fraud when there are no job changes,lack of adequate incentives and financial performance pressure for many years.Based on the analysis of the causes of financial fraud from the perspective of corporate governance,this paper chooses Kunming Machine Tool Case and puts forward some suggestions to prevent financial fraud of listed companies.