Research On Kunming Machine Tool Financial Fraud Case

In recent years,with the help of foreign capital,China has not only established a more comprehensive material production system,but also achieved considerable results in economic construction.All of these have greatly improved China's status in the international arena,and thus the people's living standards have steadily increased.During the further development of China's economy,some companies choose to go public in order to increase their popularity and attract more investors,so as to increase their competitiveness in the same industry.Some big companies that are well known make itself become a big company through listing.However,driven by the high premium of listing,many companies use financial fraud to obtain profits after they go public,deceiving the public.Even in countries with relatively sound economic and legal systems,fraudulent incidents occur from time to time.According to the observation of news data in recent years,it has been found that financial frauds by companies such as Wanfushengke,Wuyang Construction,and Hengshun Zhongsheng for their own interests not only cause them loss many small and medium investors,but also bring to the society very bad influence and makes it difficult for our capital market to develop healthily.This paper takes Kunming machine tool as an example to study and analyze the financial fraud process and information of listed companies in detail.The research in this paper has great practical significance to reduce the probability of financial fraud and the harm caused by it.For securities regulators,make them better identify the financial fraud behavior of enterprises and improve the quality of supervision: For investors,make them learn more about identifying financial fraud and protect their own interests from being deceived.Firstly,this paper introduces the means of financial fraud in Kunming machine tools,including the following three types: incremental income,cross-period revenue,and fictitious contracts.Secondly,using GONE theory to analyze the motivation of Kunming machine tool financial fraud from four aspects: greed,opportunity,demand and exposure.The main manifestation of greed factors is that managers conduct power for personal gain.The main performance factors of the opportunity factor are the external supervision problems of the company and the internal control problems of the company;the main performance of the demand factors are the individual needs and the business needs of the enterprise;the main performance of the exposure factors is the insufficient punishment.Finally,it summarizes the enlightenment of the financial fraud case of Kunming Machine tool to listed companies and investors and measures to prevent the company from making financial fraud.