Case Study Of Eastern Gold Jade Financial Fraud Based On CRIME Theory

China’s capital market is constantly developing and improving,but corporate financial fraud has always been a difficult problem perplexing the benign development of the capital market.Financial fraud does great harm,which not only affects the reasonable allocation of resources but also discourages investors’ investment confidence.China revised the Securities Law in 2019 and officially implemented it in 2020 to better regulate the capital market and curb corporate financial fraud.Although the punishment of fraud has increased in the new securities law,the phenomenon of financial fraud still exists.Eastern Gold Jade had a market value of nearly 30 billion yuan when it was brilliant as the "first share of jadeite".Later,it was punished for financial fraud and finally delisted and becoming the "first share delisted in2021" because the stock fell below the par value.Its financial fraud was listed as a typical case of "subjective malignancy and obvious" by the Securities Supervision Commission,which is very worth studying.The thesis sorts out the relevant literature of financial fraud at home and abroad,and expounds the relevant theories about financial fraud,which provides a basis for the subsequent research of the thesis.On this basis,using CRIME theory to analyze Eastern Gold Jade financial fraud cases in detail: From the perspective of fraudsters,It is found that the actual controllers and senior executives of the company ignore laws and regulations and their power is difficult to be checked and balanced;From the perspective of incentives,fraud inducement is the improper decision-making of purchasing jadeite raw stones,leads to high debt repayment pressure,excessive inventory,occupying a lot of funds,and poor profitability;From the perspective of monitoring,it is found that the failure of internal and external supervision has opened the door for fraud;In the recipes section,the thesis introduces and analyzes the fraud means of Eastern Gold Jade;In the end results section,the thesis analyzes the adverse impact on the company itself and other stakeholders after the fraud is exposed.Through the analysis of cases,the enlightenment and reference are as follows: On the company side,the company should strengthen the legal awareness of the company’s senior management,reasonably choose financing methods,maintain moderate inventory and profitability of sustainability,and improve the efficiency of internal supervision;In the aspect of accounting firms,accounting firms should improve audit quality in many aspects and improve audit efficiency and effect with the help of information technology;In other aspects of external supervision,relevant departments should pay attention to the abnormal replacement of the company’s personnel,cooperate with various forces for supervision,increase the punishment of fraud and expand the content of the company’s information disclosure.Expect thesis research can attract people’s attention to the quality of fraudsters.The company itself can strengthen the moral and legal education and behavior restrictions and supervision of executives and employees.The external supervision department can continue to pay attention to and supervise the company with improper behavior of senior executives and financial and operational problems,to play a certain role in better preventing and controlling fraud.