Research On The Motivations And Governance Of Financial Fraud In H&R Century

With the continuous development of China’s capital market,the problem of financial fraud of listed companies has become increasingly prominent,seriously undermining the market order and damaging the interests of investors.This paper is still of great significance to the study of the motivations and governance of financial fraud.There are few studies on listed companies in culture,sports and entertainment when Chinese scholars study financial fraud.Based on GONE theory,this paper makes an in-depth analysis on the motivations of financial fraud in H&R century.On this basis,some suggestions are put forward to make up for the lack of academic research and existing literature to a certain extent.Based on GONE theory,this paper analyzes the motivations of financial fraud in H&R century from four aspects: greed,opportunity,need and exposure: Chen Yuan and Zhong Junyan are greedy;tax incentives reduce the cost of fraud;under the pressure of financing,H&R Yingshi continued to seek listing opportunities,fraud helped its smooth passage of the CSRC audit and obtained a valuation of ￥3 billion;the agency failed to maintain professional suspicion;the severity of the punishment was insufficient to serve as a warning.Based on the analysis of the motivations of the fraud,this paper puts forward five suggestions to prevent and control the financial fraud: to curb the greedy mentality with the moral construction of integrity;by improving the forward-looking grasp of market trends;strengthen the role of external audit to increase the possibility of fraud exposure;improve civil compensation and punishment to warn the subject of fraud.