Study On The Motivation And Governance Of Financial Fraud In Kang Dexin Company Based On Fraud Triangle Theory And Game Theory

The report of the 20th National Congress of the Communist Party of China pointed out that high-quality development is the primary task of comprehensively building a socialist modernized country.Focusing on improving the quality and efficiency of economic development is the foundation for comprehensively building a socialist modernized country and realizing the Chinese Dream of the great rejuvenation of the Chinese nation.As the main body of economic development,it is crucial for enterprises to achieve high-quality development.In recent years,with the continuous development of the capital market,financial fraud in enterprises has been frequent,and even some "white horse stocks"have exploded,causing serious negative impacts on economic and social development.Therefore,effective prevention and governance of financial fraud in enterprises is particularly important.Based on the definition of financial fraud,fraud triangle theory,game theory and information asymmetry theory,this paper takes the typical "white horse share" Kang Dexin.Company’s financial fraud case in the history of A-share as an example to elaborate its financial fraud identification,fraudmeans and the impact of fraud.Based on the fraud triangle theory,analyze the internal motivations of financial fraud in Kang Dexin Company from three aspects:pressure factor,opportunity factor,and excuse factor.From the perspective of game theory,this paper constructs a static game model with incomplete information between.enterprises and regulators,enterprises and audit institutions,and auditinstitutions and regulators,and analyzes the external causes of financial fraud in Kang Dexin.Finally,based on the analysis results of fraud triangle theory and game theory,from the three levels of listed companies,audit institutions and regulatory agencies,it is proposed to establish a correct business philosophy,strengthen internal control management,reduce financial pressure,and improve the company’s equity structure;Optimize audit contracts,enhance the independence of external audits,and guide certified public accountants to establish correct moral and values;Suggestions for the prevention and governance of financial fraud in listed companies in China,such as increasing punishment,improving the market supervision and management system,improving regulatory efficiency and strength,optimizing and controlling regulatory costs,and exerting the role of social supervision.