Research On The Motivation And Governance Of Financial Fraud

China’s securities market has made brilliant achievements since its development in the 1990 s.As of September 2020,there have been 4002 companies listed for trading in China.Many companies with capital needs often obtain funds through listings.Due to China’s regulatory system and laws There are still insufficient laws and regulations.Financial frauds occur frequently,the amount of fraud is large,the fraud methods are concealed and diverse,and there are many groups involved in fraud.Financial fraud has seriously disrupted the development order of the securities market,harmed the legitimate rights and interests of investors,and brought the reputation of enterprises.The immeasurable negative impact will even push the entire industry into the abyss.In the face of new financial fraud methods,traditional financial indicators have limited effects in identifying fraud methods,and the proposed solutions address the symptoms but not the root cause.Therefore,it is necessary to use systematic theories to deeply analyze the causes of financial fraud in order to trace the root causes and propose targeted governance.Countermeasures,in-depth analysis of the motivations of listed companies’ financial fraud are conducive to the steady development of the securities market.This article selects *ST Kangdexin as a case study of financial fraud.*ST Kangdexin’s financial fraud methods are novel.The major shareholders use the means of signing an agreement with the bank to embezzle funds and falsify monetary funds.12.2 billion book funds are missing.The fraudulent profit is as high as 11.9 billion,which is a serious violation of laws and regulations,which has brought a huge impact on the securities market.This article uses the fraud risk factor theory to make an in-depth analysis of its fraud motivations.This article is divided into five chapters,including introduction,theoretical basis,case introduction,motivation analysis,and countermeasures.The first chapter is the introduction.First,it explains the research background and significance of this article,the theoretical research on financial fraud in relevant domestic and foreign literature,and then introduces the research methods,research content,innovations and deficiencies of this article.The second chapter is the definition and theoretical basis of related concepts.Firstly,it explains the definition and characteristics of financial fraud,and then introduces the theory of financial fraud motivation,which provides theoretical guidance for the motivation analysis of this article.Chapter 3 is an introduction to *ST Kangdexin financial fraud cases.First,it summarizes the background and fraud incidents of *ST Kangdexin financial fraud from a macro level,and then discusses the impact of *ST Kangdexin financial fraud.The fourth chapter is the analysis of financial fraud motives.First,it identifies the means of *ST Kangdexin’s financial fraud,and then uses the fraud risk factor theory to conduct an in-depth analysis of the reasons for *ST Kangdexin’s financial fraud.The analysis is divided into general factors.Analysis and individual factor analysis.The fifth chapter is the countermeasures and suggestions on how to manage *ST Kangdexin’s financial fraud motives.Aiming at the motivation of *ST Kangdexin’s financial fraud,corresponding governance suggestions are put forward to provide reference for other listed companies.