Does "High Deposit And Loan" Mean Financial Fraud?

"High deposits and loans" is an abnormal financial phenomenon.In recent years,our country’s capital market has exposed listed companies with financial fraud,such as Kangmei Pharmaceutical,Kangdexin,Dongxu Optoelectronic,Yihua Lifestyle,etc..The financial statements of these listed companies all have the outstanding feature of "high deposits and loans".Therefore,the term "high deposits and loans" has also been mentioned many times by the financial media and widely discussed.This thesis takes the "high deposits and loans" as the entry point,and selects two listed companies with the "high deposits and loans"-Kangmei Pharmaceutical and Muyuan Foods as the case.This thesis deeply researches the causes and consequences of this abnormal financial phenomenon and the method of identifying financial fraud.By analyzing the financial data of Muyuan Foods and and the financial data of Kangmei Pharmaceutical before the exposure of financial fraud,this paper shows the analysis process of identifying the financial fraud of Kangmei Pharmaceutical and the analysis of whether Muyuan Foods have financial fraud.This paper adopts the method of double-case comparative study,extracts the key financial indicators of identifying financial fraud through financial analysis,and integrates it into the Wole method to construct an evaluation system aiming at identifying financial fraud.In terms of non-financial information,this paper uses GONE theoretical analysis as an important supplement to financial analysis to study whether two listed companies have financial fraud motivations.In the aspect of case analysis,the problem was fully discovered and raised,the knowledge of financial theory was used,and the problem was analyzed in depth in combination with the actual situation of the listed company.Through case analysis,this paper finds that there are many doubts in the financial data of Kangmei Pharmaceutical before the exposure of financial fraud,and the possibility of financial fraud is very high.Although Muyuan Foods also have the characteristics of "high deposits and loans",the possibility of financial fraud is low.The main contribution of this thesis is to propose a set of financial fraud identification methods for listed companies with high deposits and loans.And from independent directors,executives,accounting firms,whistleblowers,etc.,put forward targeted suggestions for supervision of financial fraud.This case study has a certain reference significance for identifying and supervising financial fraud of listed companies,and has a certain warning effect for listed companies that are financial fraud or wanting financial fraud,and accounting firms that assist in financial fraud.