Research On The Identification And Prevention Of Financial Fraud Of Listed Companies

In the past 20 years,China’s capital market has maintained a rapid growth from scratch to maturity.Along the way,the capital market helps the real economy more and more.During this period,the capital market has brought many conveniences to the development of enterprises.For example,the capital market provides direct financing channels for small and medium-sized enterprises on the issue of difficult and expensive financing.This can solve the problem of capital shortage in the process of development for many enterprises.We will help a large number of enterprises out of difficulties,grow bigger and stronger,continue to create value,and lay bricks and tiles for China’s economic growth.The sustainable development of China’s economy also provides greater growth space for the capital market,realizing a positive cycle and a thriving scene.Then,behind this colorful background,there are still some enterprises using improper means,such as financial fraud to whitewash statements,so as to obtain high-quality resources in the capital market.In this way,the result is that the firm and diligent enterprises do not get more high-quality resources.In the rapid development of the present,due to the mismatch of market resources,enterprises failed to keep up with the pace of development of other enterprises,and were eliminated.This is not only a loss for enterprises,but also for the state.This kind of behavior seriously hinders the healthy development of the capital market.Therefore,the research on financial fraud identification and prevention of listed companies has a strong practical significance.In this paper,information asymmetry theory,iceberg theory,gone theory and other classic theories are studied and used for reference,and then combined with the financial fraud cases of kangdexin to analyze.This paper studies how to identify and prevent the phenomenon of financial fraud of listed companies by combining theory with practice.First of all,this paper analyzes the causes of financial fraud of listed companies,using the theory of gone to study from four aspects: greed,opportunity,need and exposure.Secondly,it analyzes the means of financial fraud.The means include: fictitious monetary capital through connected transactions;false disclosure of announcements and concealment of important information;fictitious business and virtual increase of profits.Through the analysis of motivation and means,then how to identify the financial fraud of listed companies.To identify the financial fraud of listed companies,we should first identify the causes of the financial fraud of the enterprises.Among the causes of the financial fraud,the unreasonable ownership structure of the company,the high proportion of the first major shareholder pledge and the frequent reduction of the actual controller conflict with the situation of the continuous strengthening of the enterprise performance.Then we start to identify the data of the specific financial statements.In the specific analysis of financial statement data,through the mutual evidence between different subjects,we can find the conflicting points.Analyze internal problems and judge the authenticity of financial data.The specific identification methods include: verifying the authenticity of monetary capital through other financial subjects;judging the authenticity of inventory through the analysis of inventory turnover rate and transportation cost;judging the authenticity of high gross profit rate through the analysis of accounts receivable and gross profit rate;judging the authenticity of net profit through the traceability of related transactions.Finally,the paper puts forward some opinions and suggestions on how to prevent financial fraud of listed companies.Strengthen investor education,improve self-protection ability;implement effective supervision in corporate internal governance;maintain due professional doubt,strengthen the responsibility of intermediary service agencies,standardize the professional ethics of auditors,increase the cost of fraud,and improve the public supervision mechanism.The innovations of this paper are as follows: 1.Through the analysis of the past research objects,we find that most of the past research objects are small and medium-sized companies with market value,and the research samples have certain limitations.The research object of this paper is "Baima stock" enterprise represented by kangdexin.Such enterprises have the characteristics of large business volume,large market value and great influence.In the process of rapid development,the market value of enterprises is increasing,and the upstream and downstream industry chains are more and more widely involved,which has more and more influence on the industry.Once such companies have financial fraud,it will have a greater negative impact on society.2.At present,kangdexin incident is the first one in the whole market due to the collapse of capital management in the group’s virtual capital pool.Perhaps in thousands of listed companies,there are many similar listed companies that are also included in the virtual cash management pool by the holding group,but the risk management and information system of these group companies ensure the liquidity of the capital pool,but this does not exclude that these companies also have security risks similar to the new events of Kangde.Therefore,how to identify similar companies in time and do a good job in advance is the value of this paper.This paper hopes that through the research on the identification and prevention of financial fraud of listed companies,more investors will join the supervision team of listed companies;more investors will be able to stay away from the huge economic losses caused by the plummeting stock price due to financial fraud;more social media will participate in regulating the behavior of listed companies;more intermediaries will keep this supervision Manage the door;let more listed companies operate on the right and healthy path;let our capital market become more powerful.Finally,I hope that through the research on the identification and prevention of financial fraud of listed companies,it can play a role in attracting more scholars to participate in relevant research and contribute to the prosperity of the capital market.