| Financial fraud refers to a means by which companies obtain illegal benefits by disclosing untrue financial information.It seriously undermines the market economic orders,violates relevant laws and regulations,and infringes economic interests of investors.Since the 1970 s,China has entered a new chapter of reform and opening up,the economy has continued to develop,and various systems have been continuously improved.However,the financial fraud incidents have gradually drawn people’s attention.In the 1990 s,financial frauds were not effectively curbed,but had exacerbated.From general private enterprises to state-owned holding companies,there have been scandals of financial fraud,including the people who chased money unscrupulously due to their greedy nature,as well as some companies falsified records in order to protect its own interests.Those incidents also reflected the construction of financial market supervision and management system could not keep up with the rapid development of the market,so they could not meet the needs of the development of the socialist market economy in the new era.At present,the prevention and crackdown of financial fraud has become a broad consensus of the government,the industry and investors.This paper takes the financial fraud incident of Jiadian Ltd.as the research topic.And the research ideas are raising questions,analyzing problems and solving problems.Then,it uses case analysis method to firstly introduce the case,which is followed by identifying the financial fraud of Jiadian Ltd.Furthermore,it analyzes the five internal factors including opportunities for financial fraud,unlikeliness of fraud exposure,low criminal cost,high financial fraud motivation,and low moral standard of the management.Base on the issues mentioned above,we provided countermeasures including decrease opportunities of financial fraud,fine tuning detecting scheme for frauds,increasing the cost of law breaking,eliminate motivations of financial fraud,and improving the corporate moral standard.Lastly,the research provides reference for the prevention and effective governance of financial fraud in listed companies. |
