Research On The Effect Of Supervision And Punishment Of Financial Fraud In Listed Companies

In recent years,with the continuous development and improvement of Chinese securities market,investors in the market have become increasingly active,and the supervision of the participants of the securities market has become increasingly strict.However,due to the late start of Chinese securities market,there will still exists some problems and drawbacks.Listed companies will carry out some financial fraud in their business activities.The regulatory penalty on the financial malpractices of listed companies is a powerful tool to regulate the market.When the listed companies and relevant personnel are punished for financial malpractices,other market participants will also be alerted.Chinese current regulatory mechanism for listed companies is an administrative punishment system represented by the China Securities Regulatory Commission.The regulatory punishment for financial fraud will not only give fraudulent enterprises a "blow on the head",so that they can correct their current fraudulent behaviors and avoid their own behaviors later,no longer choose to commit fraud,but also let other non-fraudulent enterprises take a lesson.To "kill the chicken to scare the monkey" effect.This paper holds that the financial fraud regulatory penalty effect of listed companies includes direct deterrent effect on fraudulent enterprises and indirect deterrent effect on non-fraudulent enterprises.In order to explore the effect of financial fraud regulatory penalty effect of Chinese listed companies,explore the mechanism of direct deterrent effect and indirect deterrent effect.Through descriptive statistics,this paper makes a statistical analysis of the current situation of specific effects of regulatory penalties for financial fraud of Chinese listed companies from 2011 to 2021,including the situation of financial fraud of Chinese listed companies,the penalty situation and the effect of regulatory penalties,etc.,and analyzes the effect of regulatory penalties from a macro perspective.At the same time,combined with the method of case study,from the actual point of view,this paper studies Jiadian Co.,LTD.,which has been punished by China Securities Regulatory Commission(CSRC)for financial fraud,analyzes the process and reasons of its punishment for fraud,and analyzes its market reaction,personnel changes and financial performance after being punished.At the same time,the post reaction and the possibility of financial fraud of Zhineng Xiangying and Lesong culture are explored and analyzed in order to investigate the specific role of indirect deterrent effect of regulatory punishment for financial fraud of listed companies.The research findings of this paper are as follows:(1)The punishment for financial fraud is still relatively light at present.Compared with the improper income obtained by enterprises engaged in financial fraud,the cost of financial fraud of enterprises is far lower than the income.(2)There is time-lag effect of regulatory punishment on financial fraud,deterrence is insufficient.(3)Investors have obvious market reaction to the announcement of CSRC filing investigation,which is more timely and has a certain duration.(4)The executive-linked enterprises react more to the fraudulent behaviors of the fraudulent enterprises.After the fraudulent enterprises are punished,they will make a timely announcement to clear the relationship,but there is still a certain possibility of financial fraud afterwards.