| In December 1990,the trial operation of Shenzhen Stock Exchange and the establishment of Shanghai Stock Exchange marked the Germination of China’s capital market.After more than 20 years of development,China’s capital market is gradually mature,but compared with the foreign relatively mature capital market,the domestic capital market still has many problems,financial fraud is one of them.According to the penalty clause of the CSRC,since 2001,the CSRC has made a cumulative total of 1,340 administrative penalties and 264 market ban decisions,most of which were imposed on listed companies due to financial fraud,the Financial Fraud in Fushun Special Steel Co.,Ltd.is of great significance because of its far-reaching influence and serious plot.This article is based on the Fushun special steel as a sample case,first of all,according to the timeline to sort out the whole story of the fraud,it is found that it mainly affects profits by means of fictitious inventory,construction-in-progress,fixed assets and reducing costs,etc.,based on the theory of fraud factor,it is found that the fraud in Fushun Special Steel Company is the result of five factors: the moral character of the managers is bad,the managers lose money year after year,the internal control is weak,the external audit lacks independence,and the punishment after the fraud is small Then,it analyzes the market reaction after the punishment announcement by the CSRC through the event research method,and further proves that the related system and supervision of financial fraud in our country need to be strengthened urgently.Finally,on the basis of the research of enterprise’s fraud means,motivation and postmarket reaction,this paper puts forward the preventive countermeasures and summarizes the article,for individual risk factors,managers and employees need to strengthen the moral quality and legal awareness,reduce corporate financing needs;For the common risk factors,it is necessary to strengthen the internal control,improve the audit quality,improve the external supervision system,and increase the punishment of financial fraud. |
