Research On Financial Fraud Based On Gone Theory

Since the development of China’s capital market,financial fraud cases often appear,constantly challenging the credibility of the economic market.In recent years,financial fraud cases have become more and more intense,and the fraud and illegal acts involving huge amounts such as Kang Mei and Kang Dexin have caused an uproar.Fraud cases have seriously affected the normal development of the securities market and caused irreparable losses to stakeholders.After the period of rapid economic development,China has improved the quality requirements of economic development,which lays a solid foundation for China’s sustainable development strategy.China has made many adjustments to this requirement.Among them,we should readjust the industrial structure and vigorously support the high-quality industries that can provide support for the society and the country.We will severely punish those who exploit policy loopholes during the period of rapid development,clear up market chaos and create a good environment for the high-quality development of economic construction.Taking Company H,the highest punishment company under the new securities law,as the case study object,this paper combs its fraud and the means used,deeply analyzes the causes of fraud from the perspective of gone theory,summarizes the harm and impact of financial fraud,and puts forward its own suggestions for the prevention and control of financial fraud.Firstly,this paper reviews and summarizes the research results of financial fraud at home and abroad,describes the principles of gone theory and information asymmetry theory,and briefly describes the reasons for choosing gone theory for analysis.Then it introduces the industry status of H Company and the ownership structure of the company,and lists its financial fraud means.H Company falsely increased assets,income and profits by using fictitious transactions,did not disclose as required,and deliberately concealed a number of related party transactions,litigation matters and other information,so as to cover up its illegal occupation of the company’s funds by the controller by using fictitious transactions.On this basis,this paper analyzes the motivation of H Company’s financial fraud from the perspectives of greed,opportunity,demand and exposure.In terms of motivation,the company controls the private use of funds occupied by people,which breeds greed,and the greed of audit institutions for business income also urges the occurrence of fraud;The imperfect internal governance structure and internal control system provide opportunities for fraud;The defects of the internal control system and the lax external supervision give H Company an opportunity to take advantage of it.H Company is facing delisting due to its fraud.At present,the company is facing high administrative penalties.Compared with industrial companies,the market value has seriously shrunk;The original controller lost control of the company.At the same time,the investors and creditors of the company also suffered huge losses.In view of the analysis of the case company,this paper puts forward corresponding suggestions:by strengthening the legal and moral construction of the company’s management and governance,broadening the enterprise financing channels,changing the charging mode of accounting firms,formulating and improving the delisting system of listed companies from multiple angles,this paper inhibits the subjective initiative of the company and its shareholders’ fraud;By strengthening the internal control and management of enterprises,strengthening the supervision of the system of independent directors and the board of supervisors,strengthening the market supervision,and increasing the punishment of financial fraud by relevant laws and regulations,it plays a deterrent role in trying to commit fraud.In addition,market supervision should focus on the recognition of income and assets,especially for companies suspected of profit "taking a big bath".In order to improve the efficiency of supervision of fraud.It is hoped that the above suggestions can fundamentally curb the occurrence of fraud and create a safe and transparent market investment system for investors.