A Case Study On Financial Fraud Of Qianshan Pharmaceutical Machinery Based On GONE Theory

China’s capital market has gone through more than 30 years,and the multi-level capital market system is gradually becoming complete.Capital market makes use of its resource allocation function,so that a large number of investors and enterprises to achieve a win-win situation,become a powerful booster and invigorating agent of China’s economic development.But at the same time,the capital market fraud events occur frequently,financial fraud will have a bad impact on the development of the enterprise itself,not only when financial fraud is exposed,the company’s reputation will be greatly compromised,on the basis of distorted financial information,the company is also difficult to make relevant decisions in line with its own operation and development.Information users will also mistakenly believe that enterprises are operating well,leading to the flow of capital to lowquality enterprises.Investors may lose confidence in the capital market and reduce or stop investing after suffering economic losses due to fraud,thus affecting the market’s resource allocation function,which is not conducive to the development of China’s economy.Although relevant departments continue to improve the prevention and control of fraud laws and regulations,but financial fraud methods are increasingly complex and hidden.Explore the motivation and prevention measures of corporate financial fraud,can be more targeted to standardize the operation of listed companies,remind investors to pay attention to financial fraud,help investors identify financial fraud,improve the quality of their investment.Therefore,it is in line with the current realistic needs to discuss and study the financial fraud of listed companies,put forward countermeasures to prevent financial fraud and ensure the authenticity of financial information.Taking the fraud incident of the former listed company Hunan Qianshan Pharmaceutical Machinery Co.,Ltd.(hereinafter referred to as Qianshan)as an example,based on the fraud GONE theory,this thesis reviews and sorts out the financial fraud incident of Qianshan,excavates and analyzes the motivation behind its financial fraud,and proposes the financial fraud of the listed company.Fraud prevention advice.By consulting domestic and foreign literatures related to financial fraud,and using the characteristics of the GONE theoretical model,the basic research framework of this thesis is determined.This article is divided into five parts,and studies the case of financial fraud of Qianshan.The first part clarifies the background and significance of the study of financial fraud in listed companies,sorts out and comments on the motivation,means,influence and prevention of financial fraud at home and abroad,and also introduces the research content,methods,ideas and basic framework of this thesis.The second part defines the concept of financial fraud,summarizes the characteristics of financial fraud in listed companies,introduces the common methods and general effects of financial fraud in listed companies,and introduces the theory of GONE financial fraud,which lays a theoretical foundation for the following article.The third part introduces the fraud cases of Qianshan.It first introduces the company’s governance structure and operation status,and then reviews the financial fraud cases of Qianshan,reveals its fraudulent methods,and states the impact of its implementation of financial frauds.The fourth part makes an in-depth analysis of the motivation of Qianshan’s financial fraud from the four factors of greed,opportunity,need and exposure.The fifth part briefly summarizes the previous article,draws the conclusion of the case study on the fraud of Qianshan,and puts forward the corresponding enlightenment for preventing fraud according to the four factors of GONE theory.The main methods used in this thesis to analyze the financial fraud cases of Qianshan are the literature analysis method and the case study method.After reviewing the fraud incident of Qianshan,the reasons for financial fraud of Qianshan are analyzed in detail from the Angle of four factors of GONE theory: based on greed factor,the moral responsibility and legal consciousness of Qianshan’s management are lacking;Based on the opportunity factor,it is considered that the unreasonable ownership structure of Qianshan leads to the situation that major shareholders speak for themselves,the board of directors and the board of supervisors are not effective,the internal control system is completely ineffective,and the company lacks risk control,which provides opportunities for the fraud of Qianshan.According to the need factor,Qianshan’s over-investment led to poor operation.In order to avoid the delisting risk,the management covered up the impact of investment failure and maintained the equity pledge ability to obtain funds for financial fraud.Based on the exposure factor analysis,from the cost of the possibility of exposure and fraud two perspective,that information asymmetry and intermediary institutions lack independence,less likely to expose fraud of fraud penalties insufficient light and small and medium-sized shareholders protection makes the enterprise financial fraud exposure of low cost,so enterprise will choose to implement fraud under measure the pros and cons.According to the above motivation analysis,the conclusion of this paper is drawn: the means of financial fraud is complex and diverse,the four factors caused by the GONE theory under the joint action of financial fraud,corporate fraud will damage the interests of all parties.At the same time,also obtained the GONE theory of four factors on the prevention of financial fraud of listed companies: based on the greed factor,put forward suggestions to strengthen the management of professional ethics education,improve the management of legal literacy;Based on the opportunity factor,we should optimize the ownership structure of the company,improve the internal power balance mechanism and internal control system,strengthen the risk control;Based on the need factor,it is suggested that relevant departments should perfect the delisting system of listed companies,strengthen the supervision of equity pledge behavior,and enterprises should formulate feasible development strategies.In view of the exposure factors,we should strengthen the timely and complete information disclosure,improve the independence of intermediary institutions and improve the protection mechanism of minority shareholders.