A Case Study On Financial Fraud Caused By YJGS’s Illegal Guarantee

In nearly years,China’s economy is in the stage of rapid growth,while bringing opportunities to enterprises,enterprises also have to face more challenges,therefore,the strict security market system appears more and more important.With the continuous growth of the economy,the status of the capital market is getting higher and higher.It is the common expectation of everyone to be in a stable and healthy capital market,because listed companies and investors can better protect their own interests.However,after entering this century,financial fraud incidents of listed companies occur frequently.The means adopted are more and more obscure,and the original intention of fraud is increasingly diversified,which has a great impact.It not only wastes capital market resources,but also greatly weakens the enthusiasm of investors,which is not conducive to the overall development of the market.It can be seen that the economic consequences of listed companies’ fraud are far-reaching,and it is necessary to dig out the root causes in order to protect the interests of many investors,warn the listed companies,maintain the development order of the capital market,and finally achieve the purpose of rational allocation of social resources.The financial fraud case of YJGS due to illegal guarantee involves a large amount of money,and is premeditated for a long time.It is systematic and illegal,and has a serious negative impact on the capital market.The internal control system of the company and the supervision mechanism of the board of supervisors are very typical reflected in this case.This paper starts with the financial fraud case of YJGS,respectively introduces the background and research significance of the topic,summarizes the research of domestic and foreign scholars in this area,and expounds the research content and methods.This paper combed the prepared diamond financial fraud in the timeline,emphatically from illegal guarantee this financial fraud motivation analysis of the problems existing in the enterprise,it is because these problems accumulated for many years,lead to enterprise equity is waiting to freeze,facing a number of lawsuits,financial fraud,and analyzed the YJGS how to step by step finally facing delisting.Finally,it summarizes the governance suggestions brought to the listed companies by the case.The study of This diamond company can more comprehensively discover the problems existing in the operation and management of China’s existing listed companies and the loopholes existing in the establishment mechanism of regulatory authorities in the capital market,which is of great research value.