Research On IPO Financial Fraud Of Gem Listed Companies

As the scale of China’s capital market continues to grow,the problem of financial fraud has gradually emerged and become more and more.With a rapid development of the securities market,financial fraud for listed companies occur frequently,strict prohibition have small effect,IPO financial fraud are become lot serious.Driven by huge interests,wanfu Shengke,Green Land,Xintai Electric,etc.,use many means to fabricate the relevant data of financial statements on order to achieve a purpose of achieving a various conditions required for listing.also hindered the healthy and the benign development of market economy,is also a serious blow to investor confidence,affect social the public trust in some related management department,and the company,will lose reputation,punished,severely may face the risk of bankruptcy and other bad.The paper reviews process of xintai Electric is listing the financial fraud is revealed,analyzes that ways and reasons of it is IPO fraud,On the one hand,can enrich our country in identifying financial fraud and financial accounting governance theory research,on the other hand also hope to be able to let more people attention to and reflect on this kind of problem,the relevant departments to a more perfect and strict laws and regulations to govern financial fraud behavior,and for the majority of investors to create a more favorable investment environment.IPO financial fraud have a lot of different cause and method of fraud.So,to purify the capital market,not only the enterprise itself can go to effort,also needs to improve the effectiveness of corporate governance,also need intermediaries make considerable efforts,efforts to improve their professional ability,government regulators also need to work on building and improving legal environment,The government should also strengthen the supervision system,establish multi-level supervision,improve the compensation system and improve the delisting,so as to protect the interests of investors,so that the capital a market can develop in the healthy,orderly and stable way through joint efforts of all the parties.