A Study Of Financial Fraud In Eastern Gold Jade Based On Fraud Risk Factor Theory

As a key component of economic development,the capital market can bring strong impetus to the development of the national economy.After more than 30 years of development and expansion,China’s capital market has now become quite large.However,the rapid growth of the capital market has been accompanied by a persistent problem affecting its healthy development: financial fraud,which has been repeatedly reported.From the early cases of "Yinguangxia" and "Green Earth" to the recent cases of "Swerther Island" and "Kangmei Pharmaceuticals",there have been many cases of financial fraud.The incidents of financial malpractice,each of which is alarming,have seriously undermined investors’ confidence and increased public disappointment in the capital market.The frequent occurrence of financial fraud has hindered the healthy development of the capital market,and investors have questioned the ability of government regulators such as the Securities and Futures Commission.At the same time,government regulators have continued to introduce new policies to discipline and regulate the capital market,and the new Securities Law introduced in March 2020 demonstrates the government’s determination and confidence.In view of this,this paper uses the fraud risk factor theory to study the financial fraud of Orient Golden Jade Corporation Limited(hereinafter referred to as "Orient Golden Jade",stock code: 600086),in light of the overall situation of financial fraud of listed enterprises in China in recent years,in an attempt to explore effective prevention and control measures,and to put forward the prevention of fraud that can be applied.This paper adopts the literature induction method and case studies.This paper adopts the literature induction method and case study method to analyse the causes and means of financial fraud of Orient Golden Jade from the perspective of fraud risk factor theory,and propose corresponding preventive and management measures.This paper is divided into six parts: Part I,Introduction: introduces the background and significance of the study,the relevant literature at home and abroad and the main research methods;Part II,Concept of financial fraud and related theoretical foundations: defines financial fraud and introduces the relevant theoretical foundations;Part III,Overview of the financial fraud case of Orient Golden Jade: introduces the basic situation of the case company,reviews the financial fraud incidents and analyses the main fraud techniques;Part IV,Fraud risk factor theory based on the case study.Part IV,the analysis of financial fraud based on the fraud risk factor theory;Part V,the governance of financial fraud based on the fraud risk factor theory: based on the previous analysis,the corresponding governance measures are proposed for the five aspects of the fraud risk factor theory;Part VI,the conclusion and outlook of the study.Through the study of financial fraud cases,this paper proposes to improve the relevant governance mechanisms from different perspectives to reduce the possibility of financial fraud and thus ensure the healthy and good operation of the capital market.As this paper is only a case study,the conclusions drawn from it are limited and further research is needed to determine whether they are applicable to other enterprises.