Research On The Identification Of Financial Fraud In Listed Companies Based On The Five-dimensional Model

Over the past 30 years of reform and opening up,China’s capital market has grown from nothing to maturity.Over the past three decades,from the Shanghai and Shenzhen Stock Exchanges to the New Third Board,and then to the regional equity market,from the main board,the SME board,the Chi Next,the Science and Technology Innovation Board to the New Third Board,the New Fourth Board,and the Beijing Stock Exchange,the access mechanism for listed companies More and more strict,my country’s "pyramid" type of multi-level capital market system has initially formed.However,in recent years,some listed companies have taken advantage of the imperfection of the system to disrupt the normal market economic order,disrupt the normal operation of the capital market,and damage the interests of small and medium investors through financial fraud.In 2021 alone,a total of 32 listed companies in Shanghai and Shenzhen will be punished by securities regulators for financial fraud.How to effectively identify and prevent financial fraud in listed companies has become an important task in the governance and improvement of my country’s capital market at this stage.Taking the financial fraud incident of CITIC Guoan(000839)as an example,this paper firstly review the fraud incident of CITIC Guoan from five aspects: counterfeiters,counterfeiting methods,and fraudulent motives,and analyzes the impact and decision-making mechanism of fraud.Based on the operation and financial status of CITIC Guoan,combined with the industry background,through quantitative and qualitative analysis methods respectively,using the five-dimensional financial fraud identification model proposed by Professor Huang Shizhong of Xiamen National Accounting Institute,respectively,from abnormal indicators,abnormal dimensions and financial fraud judgments In three stages,identify and analyze the case of CITIC Guoan,and finally put forward reasonable suggestions on the enlightenment of financial fraud identification and how to better early warning of fraudulent behavior.The main conclusion of this paper is that CITIC Guoan’s financial fraud occurred with the knowledge or even acquiescence of the management of the listed company.Through the comprehensive use of the five-dimensional financial fraud identification model,according to the analysis path of pre-identification-abnormal analysis-fraud detection,the fundamentals and financial situation of CITIC Guoan before and after fraud were analyzed.In the dimension,it was found that CITIC Guoan had abnormal indicators and related signs of fraud in the gross profit margin of its main business,operating cash flow,and the appointment of accounting firms.The research results confirm that the pre-identification of financial fraud is achievable.By summarizing and refining the characteristic variables of fraud,cross-validation from both financial logic and business logic can be used to warn financial fraud in advance.Based on this,it is necessary to pay attention to the identification of financial fraud in advance,pay attention to the related events of the stakeholders of listed companies,and expand the data sources and perspectives required to identify fraud;some behaviors such as major foreign investment and major related transactions of listed companies are extremely May be the key motivation driving the fraud of listed companies.