Research On Financial Fraud In Bulk Commodity Trading Of Listed Companies Take Zange Holdings As An Example

With the further development of the capital market,the means of financial fraud have emerged one after another,from fictitious income and fictitious inventory to fraudulent transactions such as accounts receivable and advance receipts.The form and content of financial fraud are constantly changing and upgrading,which has brought a great impact on the capital market,resulting in loss of investor confidence,reduced market activity,and a decline in the credibility of regulatory agencies,which has had a negative impact on economic development and social progress.However,the use of bulk commodity transactions for financial fraud is gradually emerging as a new type of fraud.Bulk commodities are material commodities bought and sold in large quantities for industrial and agricultural production and consumption.They not only have commodity attributes,but also have financial attributes.In the circulation of bulk commodities,only wholesale but not retail,so there are a large number of accounts receivable and prepaid accounts in the process of transactions.Moreover,due to the strong professional nature of its products,the inventory of the products is very special,there are auditing difficulties and blind spots,and there is a risk of financial fraud,which provides conditions for listed companies to use bulk commodity transactions to conduct financial fraud.Commodities not only involve financial markets and commodity markets,but are also an important fulcrum in the field of people’s livelihood.Therefore,the scope and extent of its fraud will be more extensive and far-reaching,which is also the research value of this article.This article takes the bulk commodity financial fraud as the research direction,through the literature research method and case research method,based on the principal-agent theory,the GONE theory,and the information asymmetry theory to conduct an in-depth analysis of the financial fraud cases of Zangge Holdings.Starting from the beginning and end of the fraud and the fraud measures,combined with the motives of the financial fraud and the social impact,the GONE theory is selected as the main line,and the financial fraud of listed companies is further elaborated from the four dimensions of greed,need,opportunity and exposure.Motivation and means,and deeply analyzed how Zangge Holdings used the peculiarities of bulk commodity transactions to conduct financial fraud.The unreasonable internal structure of Zangge Holding Company,the greed of managers’ desires,the special commodity trading,and the imperfect system and supervision make it less likely that fraud will be exposed,and it also provides opportunities for fraud.In response to the above analysis,the article finally proposes governance countermeasures from different scope levels,and proposes that the prevention and governance of bulk commodity financial fraud require the joint efforts of the company’s internal and external,organizations and individuals.Through the analysis of this case,it is hoped that the methods for identifying financial fraud measures can be broadened,and enterprises that are undergoing or intending to commit fraud can be deterred and warned in order to maintain the long-term operation of the economic market.