A Case Study Of Financial Fraud Based On GONE Theory

In recent years,China’s economy has developed rapidly,the capital market has made great achievements,the securities market has been improved and developed,and the overall scale is continuously expanding.Many enterprises obtain financing through the securities market to seek further development,while investors accumulate wealth through securities investment.But at the same time,China’s capital market started relatively late,and many mechanisms are not mature enough.Due to the imperfect governance,inadequate supervision and other reasons,financial fraud,whitewashing statements of more violations.This not only disturbs the order of capital market,affects the development of enterprises,but also makes investors suffer losses.Therefore,the study of financial fraud has important theoretical and practical value.This paper selects the financial fraud event of Dengyun stock as the research case.The enterprise is subject to the administrative punishment of CSRC due to financial fraud.The market competition in the auto parts manufacturing industry is very fierce,and there are problems of imperfect governance structure,coupled with poor supervision,resulting in fraud,which is a very typical case.This paper mainly includes the introduction,related concepts and theories,case introduction,motivation analysis and suggestions.Starting from the research background,this paper combs the existing research results and related theories,and selects the comparative advantage of gone theory as the research basis.Based on the fraud behavior analysis of this case,this paper gives corresponding suggestions for different motivation of fraud.The author believes that the management and relevant employees of Dengyun are lack of legal awareness;there are some defects in the internal governance structure;the current situation of industry development makes them face certain performance pressure and financing demand,coupled with weak external supervision,which together lead to the occurrence of fraud.Therefore,strengthening the legal and moral education of managers and employees,optimizing the internal governance structure,reasonably expanding the financing channels of enterprises,and supporting relevant institutions in policies,and strengthening external supervision can effectively prevent and control the occurrence of financial fraud and purify the securities exchange market.Based on the national conditions,the author analyzes and summarizes the causes of fraud of the enterprise based on the gone theory,and gives corresponding suggestions according to different causes,applies the theory to practice,combines with the current situation of the capital market,and widens the research scope of the existing literature.