Study On Identification And Governance Of Financial Fraud In Listed Companies

In recent years,financial fraud in listed companies occurs frequently,which seriously interferes with the healthy development of China’s capital market.Therefore,how to identify the financial fraud of listed companies and formulate countermeasures against the incentives of fraud has become a top priority.In October 2020,issued by the State Council "about further advice to improve the quality of listed companies" made clear that to optimize the structure of listed companies and the development environment,makes the operation of the listed company regulatory obvious ascension,information disclosure quality continue to improve,to effectively solve prominent problems,the sustainable development ability and overall quality improved significantly.The release of the Opinions not only meets the needs of high quality and stable development of Chinese listed companies,but also helps the management of listed companies and external regulatory agencies to effectively identify and control corporate financial fraud,which is conducive to promoting the healthy and stable development of China’s capital market.Based on the analysis of the listed company financial fraud means and motivation on the basis of,with rui xing coffee based financial fraud case,by using the theory of fraud risk factors,from the moral quality,motivation,opportunity for fraud,found the possibility of,found that the degree of punishment after fraud in five aspects,such as incentive for fraud identification for rui xing coffee;By analyzing the financial statement data of enterprises,the M-score model is used to identify the financial fraud results of Luckin Coffee.Finally,the countermeasures are put forward from the aspects of strengthening the moral construction of the company,eliminating the motivation of fraud,reducing the opportunity of fraud,improving the discovery mechanism and increasing the punishment.By analyzing the financial fraud of listed companies represented by Luckin Coffee,it is helpful for enterprises to realize the serious consequences of financial fraud and the importance of internal governance for enterprise development.At the same time,it is helpful to promote cross-border securities supervision cooperation,improve the enforcement of China Securities Regulatory Commission,promote cross-border securities supervision to form a systematic,bilateral,consistent and standardized legal basis and implementation guidelines,in order to better protect the stable and orderly development of the securities market,and protect the interests of all investors of listed companies.