| Since the reform and opening up,China’s capital market has been developing for decades.In the process of development,some listed companies used various means to embellish their financial statements,which to a large extent prompted investors to make wrong investment judgments and ultimately suffered losses.Taking a general view of the domestic and international markets,financial fraud scandals have occurred one after another in recent years,with an increasing frequency.During the ten years from 2012 to 2021,the financial fraud of Kangmei Pharmaceutical,the financial fraud of Kangdexin,the financial fraud of Zhangzi Island and other cases had a bad impact on the domestic capital market,which caused the loss of investment confidence of domestic direct and potential investors,inevitably interfered with the market economic order,and thus restricted the benign development trend of the domestic capital market.Enterprises in various cases of financial fraud are also subject to investigation and punishment by the CSRC,resulting in a sharp decline in corporate reputation,forced delisting and even bankruptcy.Selecting typical cases of financial fraud,analyzing the means and causes of financial fraud in detail,and sorting out the corresponding prevention measures accordingly can scientifically and reasonably curb the occurrence of financial fraud,maintain market order,enable investors to re-establish confidence,and thus promote the development of China’s economy.This paper is divided into six parts.The first part is the introduction,which describes the research background,purpose and significance.The second part is the concept definition and theoretical basis,focusing on the concept,basic theory and motivation theory of financial fraud,which lays a theoretical foundation for the motivation analysis and prevention measures in the following text.The third part is the case analysis of financial fraud in Kangmei Pharmaceutical.This part combs the timeline of financial fraud in Kangmei Pharmaceutical,recreates the occurrence process of the case with time as a clue,analyzes the means of financial fraud in Kangmei Pharmaceutical,and explores the impact of financial fraud in Kangmei Pharmaceutical on the stock market and other economic consequences using the event study method.The fourth part takes GONE theory as the theoretical basis,and thoroughly analyzes the fraud causes of Kangmei Pharmaceutical according to the four driving factors of the theory(G: greed,O: opportunity,N: demand,E: exposure).The fifth part,based on the analysis of the above reasons,puts forward the countermeasures of prevention and control in combination with the situation of the domestic market.The sixth part is the end of the article,which sorts out the manifestations of the four main causes of financial fraud in Kangmei Pharmaceutical,and explains the shortcomings of this article and the prospects for the future.Through the writing of this article,we analyzed the four motivation factors of financial fraud in Kangmei Pharmaceutical,and provided corresponding prevention measures.We hope to enrich the case studies of financial fraud based on GONE theory,further provide ideas for the domestic market to explore the causes of financial fraud and prevention measures,so as to promote the development of the domestic economy. |
