| The governance of financial fraud research has strong practical significance for all stakeholders of the enterprise,the fraud risk factor theory,the fraud factor is divided into individual risk factors and general risk factors,which emphasizes that when the two are combined,and the fraudster believes that the behavior it implements will bring benefits to itself,the fraud will occur.An in-depth analysis of fraud risk factors and targeted governance recommendations can lead to some common problems and provide warnings to business operators and external regulators.With the rapid development of China’s economy and the increasing number of listed enterprises,therefore,the use of risk factor theory to conduct research on the governance of financial fraud is conducive to preventing the occurrence of financial fraud incidents in advance.This article selects Guangzhou Lonkey Company as the research object,the predecessor of Guangzhou Lonkey Company was established in 1959,becoming the first enterprise in central and southern China to produce hardening oil,restructured in 1992,listed on the Shenzhen Stock Exchange in 1993,issued an announcement in September 2020 to explode its 572 million yuan inventory disappeared,and the cumulative decline in stock prices in the next three days reached27%,creating the largest decline in the company’s listing dependence,and the stock was named "ST".In November,the company’s overdue debts have reached 704 million yuan,and in November 2021,the Securities Regulatory Bureau announced that Fu Yongguo,the former chairman of Guangzhou Lonkey,had adopted a 10-year ban on the securities market,and imposed a total penalty of 14.05 million yuan on Guangzhou Lonkey and related responsible persons.This article first introduces the situation of Guangzhou Lonkey Company,including business scope,financial status and industry background in recent years.Secondly,the fraud incidents of Lonkey are sorted out in detail according to the development of the incidents,and the cases are studied from three levels: fraud means,fraud motives and fraud effects,and the motives of Guangzhou Lonkey financial fraud events are explored based on the fraud risk factor theory.The following conclusions were drawn: Guangzhou Lonkey Company relied on the old development model,the governance structure was flawed,the legal awareness was weak,and it was under financial pressure,and it obtained improper benefits by inflating profits and conveying benefits through related party relationships with the management.Finally,combined with the above theories and cases,this paper puts forward the following suggestions for the prevention and control of financial fraud of listed companies in China: It is necessary to focus on the five factors of fraud,starting from the five dimensions of moral character factor,motivation factor,opportunity factor,exposure factor and punishment factor,to improve the moral standard of management,reduce incomparable opportunities,enhance financial transparency,and at the same time enhance supervision,comprehensively monitor the financial fraud of listed companies,so that the market can operate normally and well. |
