Research On Corporate Governance Of Financial Fraud In Listed Companies

The phenomenon of financial fraud appears almost at the same time with my country’s capital market,and it has become more and more serious in recent years.According to official data released by the China Securities Regulatory Commission,in 2021,a total of 75 listed companies will be subject to administrative penalties by the China Securities Regulatory Commission for misrepresentation,information disclosure violations,etc.,and the number of listed companies punished has increased by 27% over the previous year.my country’s capital market has developed for more than 30 years since the 1990 s.While achieving excellent results,there have also been some financial frauds.So in the background of the development of the capital market for so many years and the continuous regulation of the legal system,why does the phenomenon of financial fraud continue to appear? What problems does the continued occurrence of financial fraud reveal in terms of corporate governance? How can these problems be solved? In-depth research and answers to the above questions are crucial to protecting the interests of investors,improving the development of financial markets,and developing high-quality economies.This thesis chooses the case of Kangmei Pharmaceutical as the research object.On the one hand,it is because Kangmei Pharmaceutical has a certain representativeness,the amount of fraud is large,and the various methods of fraud have typical research significance for corporate governance;The civil lawsuit is the first successful practice of my country’s securities special representative system,which provides important data and enlightenment for in-depth exploration of the problems existing in its corporate governance.This article first describes the process and consequences of Kangmei Pharmaceutical’s fraud in chronological order.Then,in-depth analysis of why Kangmei Pharmaceutical faked and in what way.Finally,based on the actual situation of my country’s capital market and the judgment of the Kangmei pharmaceutical class action case,from the internal governance and external governance of listed companies,the countermeasures and suggestions for governance of financial fraud are put forward.After analyzing the financial fraud case of Kangmei Pharmaceutical,this thesis draws the following conclusions: First,the internal governance mechanism of Kangmei Pharmaceutical is chaotic,there are excessive concentration of equity and lack of supervision,the organizational structure of the board of directors is chaotic,and the independence of the board of supervisors is insufficient,etc.Second,the lack of comprehensive and timely supervision by regulatory agencies,the poor ability and independence of intermediaries,the lack of freedom and independence of the media,and the lack of strong investor protection are the external governance problems of listed companies.Third,financial fraud needs to be managed from both internal and external aspects.By introducing institutional investors to optimize equity and at the same time improving the voice of minority shareholders,ensure that the operating mechanism of the board of directors is perfect and scientific,and give play to the independent supervision role of the board of supervisors.Externally,it is necessary to strengthen the timeliness of supervision and punishment,improve my country’s delisting system,improve the independence of intermediaries,ensure the independence of the media and the freedom of reporting,and at the same time establish a systematic investor protection mechanism,to protect the majority of small and medium investors who are in a vulnerable position in information.With a good external governance environment to promote the continuous improvement of the company’s internal governance system,the continuous improvement of the internal governance system of listed companies can also promote the prosperity of my country’s financial market and the high-quality development of the economy.