Research On The Identification,motivation And Prevention Of Financial Fraud In Export To Domestic Enterprises

With the Belt and Road Initiative,China’s foreign economy has entered a rapid stage of development,and more and more listed companies are exploring overseas markets.However,the international trade environment has undergone drastic changes at the same time,with the rise of trade protectionism and the escalation of frictions between countries.Many enterprises that rely heavily on exports are experiencing increasingly difficult survival and are facing enormous operational and financial pressures.The outbreak of COVID-19 has injected instability into an already volatile environment.In this context,China launched a series of transformation measures to change the business model,production mode and sales strategy of enterprises,to help enterprises adapt to foreign competition at the same time,expand the domestic market,realize the transformation from export to domestic sales.However,due to the different strategic choices of foreign trade enterprises,their financial will also cause different degrees of impact,the wrong radical transformation strategy will further intensify the financial crisis of enterprises,aggravate the possibility of fraud.Financial fraud is a chronic disease in the capital market.Aiming at fraud,various countries have introduced a number of rectification measures,but the effect is still small.Chinese securities regulatory policies have been updated in recent years to reduce fraud by raising the threshold of access,increasing penalties and other forms.However,in addition to the government,investors,auditors and other relevant personnel also need to improve the ability to identify the information disclosed in the process of transferring enterprises to domestic sales and update identification methods,so as to effectively prevent fraud.Therefore,according to our market cases,it is particularly important to identify and analyze the financial fraud caused by the export company’s conversion to domestic sales.In this paper,after learning from and referring to the theoretical basis of financial fraud and related literature of Chinese and foreign scholars,based on the principal-agent theory,information asymmetry theory and internal control theory,etc.,combined with the Chinese market cases,with GONE theory as the theoretical basis,the Yihua Life financial fraud event that implemented the domestic sales transformation after foreign trade accounted for more than 60% is taken as the case object.In-depth analysis of the case.There are seven chapters in this paper.The first chapter introduces the research background,research significance,research content,research methods and technology roadmap,and combs and analyzes the relevant literature at home and abroad.In the second chapter,the key concepts involved in the paper are explained,and the theoretical basis is elaborated to support the writing of the following paper.The third chapter analyzes the current status and characteristics of the enterprises that export to domestic sales,and identifies the financial fraud means of the enterprises that export to domestic sales and analyzes the motivation,which lays the foundation for the prevention and control suggestions in the later stage.The fourth chapter selects Yihua Life as the case enterprise,introduces its general situation,industry,market and governance structure for analysis,reviews the fraud of the company,and expounds the release information of financial condition before the fraud is exposed.Chapter five,the specific use of GONE theory,Yihua life fraud motivation for in-depth analysis,explore the deep causes of export to domestic enterprises financial fraud.Chapter six,based on the causes of Yihua Life financial fraud,targeted from the company,external regulatory authorities and investors three aspects of the enterprise export to domestic sales stage of financial fraud proposed effective prevention and control suggestions.The seventh chapter,through the overall analysis of Yihua’s life,draws the research conclusion and reflects on the shortcomings of this paper.Based on the GONE theory,this paper conducts a single case analysis of Yihua Life,and further explores the financial situation faced by enterprises after exporting to domestic sales,further enriching the relevant research on financial fraud of enterprises that export to domestic sales,and providing reference for other foreign trade enterprises facing or in transition,self-examination and self-correction,to guard against fraud.