Research On The Identification And Prevention Of Financial Fraud In Guangzhou Longqi Based On CRIME Theory

With the rapid development of my country’s economy,financial fraud cases have been exposed one after another,and many listed companies are punished by relevant departments for suspected financial fraud.These actions not only have impacted my country’s free market,hindered the development of listed companies,but also caused investors to lose confidence in the financial market.Therefore,how to effectively identify and prevent financial fraud has high theoretical value and realistic significance.In this study,the case analysis method and empirical analysis method are used to study the financial fraud problem of listed companies.First of all,the CRIME theory is the framework to analyze the five aspects of the Crime’s Langqi financial fraud from the five aspects:Cooks,Recipes,Incentives,Monitoring and End Result.Secondly,this article uses the Logistic regression model to establish a financial fraud recognition model for chemical raw materials and chemical products manufacturing companies.In the case of modeling,refer to the case analysis of CRIME theory as the framework,and 27 financial and non-financial indicators that may change due to financial fraud.At the same time Listing companies with chemical products manufacturing as research samples,and based on the company that has not been announced by regulatory agencies such as the Securities Regulatory Commission and the Securities Regulatory Commission and the Securities Regulatory Commission and the Securities Regulatory Commission,the company has been published as a controlled sample to build a corresponding financial fraud recognition model and the recognition rate reaches 74.8%.The following conclusions are obtained:(1)In the background of the financial fake incident,the probability of financial fraud occurred in the context of extreme concentration of equity and control.(2)The commercial risks caused by unreasonable business development models of listed companies will lead to financial fraud in the implementation of the company.(3)The method of identification of financial fraud should be continuously updated with the diversification of economic business.It can be analyzed by corporate information to build effective financial fraud recognition models.