The Influence Of Performance Commitment On Financial Fraud From The Perspective Of Corporate Governance Absence

In recent years,with the gradual development and improvement of the capital market,many enterprises hope to promote the high-quality development of enterprises and further promote the competitiveness of enterprises through mergers and acquisitions.Due to the information asymmetry between the two parties in the transaction,the performance commitment is more and more widely used as a contractual arrangement in mergers and acquisitions.The original intention of the performance commitment is to check and b alance the "high valuation" caused by information asymmetry,and it is a kind of protection for the promised party and small and medium investors.However,if corporate governance is absent,it is easy to cause performance commitments to change.In the early stage of performance commitments,reasonable performance commitments can effectively adjust valuations,provide incentives for management,and protect minority shareholders.However,due to the flaws in the corporate governance of some enterprises,many performance commitments failed to meet the standards or performance commitments were changed midway.Excessive performance commitments are accompanied by huge performance pressure,and the performance commitment system also produces corresponding risks under such strong pressure.In order to fulfill performance commitments and avoid compensation,many companies have changed their accounting and bookkeeping methods,operating from earnings management and even financial fraud.Therefore,in order to protect the interests of many investors and maintain the normal operation of the capital market,it is particularly important to improve corporate governance and set reasonable performance commitments to avoid financial fraud.This paper first introduces the research results of domestic and foreign scholars on corporate governance,performance commitment,and financial fraud.Secondly,this paper defines the concepts of corporate governance,financial fraud and performance commitment,and expounds the relevant theo retical basis.Furthermore,using the case study method,taking the financial fraud of Shanghai Yin Science and Technology Corporation,a subsidiary of Chang Yuan Technology Group,as an example,from the perspectives of corporate governance,performance commitment and financial fraud,this paper conducts research on the influence of high performance commitment on financial fraud from the perspective of corporate governance absence.As the merged party,Shanghai Yin Science and Technology Corporation committ ed financial fraud,which caused huge damage to the property of investors and their own reputation.This financial fraud incident is a typical case of financial fraud and injection of "non-performing assets" due to the pressure of high performance commitme nts in the absence of corporate governance.The purpose of this study is to discover the impact of unreasonably high performance commitments on financial fraud in the absence of corporate governance.This case is studied and analyzed from the motivations o f performance commitments affecting financial fraud under the absence of corporate governance,the consequences of performance commitments on financial fraud under the absence of corporate governance,and the identification of financial fraud risks under performance commitments.The main conclusions of this paper are as follows:(1)There are defects in the corporate governance of Chang Yuan Technology Group.(2)Lack of corporate governance will increase the probability of financial fraud.(3)Excessive performance promises will increase the probability of financial fraud.(4)The absence of corporate governance will catalyze the impact of performance commitments on financial fraud.Therefore,the company needs to improve its internal control,improve the governance system,set reasonable performance commitments,and prevent the occurrence of financial fraud.