Research On The Identification Of The Motive Of Financial Fraud And The Countermeasures Based On Gone Theory

"If there is 100% profit,the capitalists will take risks;if there is 200% profit,the capitalists will flout the law;if there is 300% profit,the capitalists will trample all over the world! " As Marxism said in "capital" : "capital came into the world from head to foot,dripping blood and dirty things from every pore.In fact,capital itself is not at fault,but because some Down by Law become the slaves of capital for their own self-interest,which makes capital predatory and even brings very bad influence to others and society.In recent years,the capital market has also made great progress,but at the same time,some problems that can not be ignored are also affecting the maturity of the capital market,among which the financial fraud is the most prominent.Financial Fraud has always been a stumbling block to the healthy development of the capital market.Its existence not only disturbs the order of the capital market,but also affects the credit of the capital market,damages the confidence of investors and even causes the loss of state-owned assets.At present,the study of financial fraud,whether in theory or in practice,has a more profound practical significance.As a classical theory to analyze the causes of financial fraud,GONE theory theoretically and systematically summarizes the emergence of corporate financial fraud from the perspectives of four factors: greed,need,opportunity and exposure,only when these four factors are present at the same time can financial fraud occur.This paper is based on Gone Theory,the company's financial fraud motivation to identify and preventive measures.In the first chapter,the paper first expounds the background and significance of the research,then defines the related concepts,including the definition,characteristics and differences between financial fraud and other concepts,then the article elaborated the research mentality,the method,the content,the innovation and the insufficiency.In the second chapter,we discuss the basic theories,including Information asymmetry theory,rational economic man hypothesis,GONE theory,and other theories of financial fraud,then,it reviews and reviews the domestic and foreign research literature on the motivation,identification,means and governance of financial fraud.Next,this paper conducts a case study based on theory.First,it introduces thebasic situation of Guangdong Media's merger and acquisition of Champs Elysees,including the brief introduction of the two companies,the process and results of the merger and acquisition,as well as the background and exposure process of Champs Elysees' s financial fraud,then analyzed the Champs Elysees Financial Fraud Means and Champs Elysees financial fraud consequences and impact.On this basis,the motivation of the fraud case is analyzed with GONE theory,and it is found that the greed factors include large shareholders' individual greed,takeover executives' greed,agency executives' greed,Opportunity factors include internal opportunities and external opportunities;The need factors include the need to complete the merger and acquisition and the need to obtain illegal personal benefits;the exposure factors include collusion to reduce the exposure risk and the low cost of punishment after the exposure of financial fraud.Finally,through the analysis of the causes of fraud,GONE four factors,proposed countermeasures and suggestions: First,improve the internal prevention mechanism,one is to strengthen the building of professional ethics,to curb greed;The second is to improve the internal control system,enhance corporate governance;the third is to reduce improper demand,build a line of Defense Enterprise Risk;the fourth is to strengthen the internal audit function,focusing on abnormal matters.Secondly,strengthen the external checks and balances of intermediary institutions,first,enhance professional competence and reduce the chance of fraud;second,strengthen risk awareness and due diligence in place;third,improve internal quality control and increase the risk of fraud exposure;and finally,strengthen external supervision measures,one is to increase the capital market punishment,increase the cost of fraud;two is to improve the regulatory mechanism,enhance the possibility of fraud exposure;three is to strengthen investor education,play the role of supervision by public opinion.