Research On Financial Fraud Management Of Kangmei Pharmaceutical Industry From The Perspective Of Corporate Governance

China's capital market was founded in the 1990 s under the promotion of Comrade Deng Xiaoping.It has been 30 years since then.The formation of the capital market not only provides key financing channels for Chinese enterprises,but also opens up new investment channels and means for investors,and speeds up the optimal allocation of social resources in a deeper level.At the same time,the accelerated development of the capital market has brought some problems,such as the repeated financial fraud,whether it is Yinguangxia or qiongminyuan,whether it is Zhengbaiwen or Lantian shares,every exposure of financial fraud will shock the whole capital market,from enterprises to shareholders to investors are deeply affected by financial fraud,not only that,financial fraud Behavior will also hinder the orderly operation of the capital market.Therefore,it is very important to make financial fraud disappear in promoting the healthy development of capital market.In 2019,Kangmei pharmaceutical industry,which was exposed as a "white horse stock" of financial fraud,caused an uproar in the capital market.Since the establishment of the capital market,Kangmei pharmaceutical's financial fraud event has never involved in the large amount of digital money and the secret of means.Therefore,the financial fraud of Kangmei pharmaceutical industry is selected as the research case.The process of case study mainly uses the literature research method and case analysis method.On the basis of sorting out the domestic and foreign literature on the relationship between corporate governance and financial fraud,starting from the principal-agent theory,information asymmetry theory,fraud triangle theory and other related theories,from the perspective of corporate governance,combined with the fraud triangle model,respectively,from the motivation,opportunity,self integration Physical and chemical analysis of the financial fraud cases of Kangmei Pharmaceutical Co.,Ltd.shows that the ownership structure,independent director system,board of supervisors floating in the form,and management's completion of equity incentive plan are all the triggers of financial fraud in Kangmei Pharmaceutical Co.,Ltd.It is concluded that improving internal governance structure andstrengthening external governance can help listed companies reduce financial fraud Conclusion.