Research On Financial Fraud Of Manufacturing Listed Companies In China

As a big manufacturing country,the development of manufacturing industry is particularly important,and the base of manufacturing enterprises is large,the good and the bad are uneven,and financial fraud often occurs.Therefore,it is very important to study the means and motivation of financial fraud of manufacturing enterprises,to reduce the fraud of manufacturing enterprises,to standardize the financial fraud in the securities market,and to explore some effective governance measures It plays an important role.Firstly,this paper collates and summarizes the relevant literature on the causes of financial fraud,combs the context of its research and development,and introduces the relevant theories;then summarizes the problems existing in the development of manufacturing industry;taking 42 listed manufacturing companies with financial fraud handled by China Securities Regulatory Commission from 2014 to 2019 as examples,this paper uses the method of statistical description to analyze the current situation of manufacturing enterprises This paper summarizes the means of financial fraud at different stages,and concludes that the means of financial fraud can be divided into two categories:information disclosure fraud and financial report fraud.It analyzes the causes of financial fraud of manufacturing enterprises in China based on the theory of gone.It chooses st Fugang in manufacturing industry as the research object,and through the research on the financial fraud cases of St Fugang,it finds that the means of fraud include increasing profits and reducing profits Based on the theory of gone,this paper analyzes the causes of St Fugang’s financial fraud,how to identify the financial fraud of St Fugang,summarizes the damage caused by the financial fraud cases of St Fugang to investors,enterprises and securities market,and puts forward specific suggestions to prevent and manage the financial fraud of manufacturing enterprises.Based on the case studies of manufacturing enterprises and St Fugang,this paper concludes the following conclusions: first,the causes of financial fraud in manufacturing enterprises are as follows: firstly,there are problems in the moral quality and decision-making ability of the executives in manufacturing enterprises;secondly,manufacturing enterprises areoften unable to maintain good profitability for a long time in the current fierce market competition Finally,the defects of the internal control system and the weak external supervision of the enterprise further intensify the motivation of the enterprise fraud.Second,the research found that the main causes of St Fugang’s fraud are as follows: first,St Fugang’s annual performance loss,there is the risk of delisting;second,the company’s chairman and management excessive pursuit of personal interests,the lack of internal supervision,did not form an effective supervision;finally,the imperfection of China’s securities market law gave st Fugang a chance.Third,the identification of financial fraud of St Fuzhou iron and Steel Co.mainly includes the overall downturn of manufacturing industry,virtual increase of inventory,virtual increase of construction in progress,mismatch between profit and operating income and net cash flow.Fourth,the financial fraud of St Fugang has caused great harm to investors,enterprises and securities market.On the one hand,the enterprise has been punished by law and its reputation has been seriously damaged.On the other hand,the reputation of Zhongzhuo certified public accountants firm hired by St Fugang has been seriously damaged and its development prospects are bleak.Fifthly,based on the analysis of financial fraud in St Fugang,this paper proposes the following measures to prevent financial fraud in manufacturing enterprises: enterprises should optimize corporate governance structure,improve corporate management level,improve internal control of enterprises,firms should improve audit quality,financial institutions should also improve investment mechanism,and relevant departments should also improve legal system.