The Study On Financial Fraud Of Listed Companies In Film And Television Industry

Recently,the Ministry of Culture and Tourism pointed out that China’s cultural industry is in an important period of strategic opportunities and still has great prospects.As an important part of the cultural industry,the film and television industry has also developed rapidly with the strong support of national policies.However,with the influx of a large amount of capital,regulatory policy on film and television industry has been tightened gradually.The operation of film and television companies in the industry is not ideal,and even appears in illegal information disclosure and financial fraud.Therefore,exploring the causes of financial fraud of listed companies in the film and television industry and improving the corresponding governance environment will contribute to the healthy and long-term development of the film and television industry and even the capital market.This paper defines the concept of financial fraud,compares and summarizes the characteristics of listed companies in the film and television industry,and further deduces the motivation of financial fraud.Including the higher operating pressure of the film and television industry and the high investment cost of film and television projects,resulting in the huge financing demand and performance being more affected by the COVID 19.The characteristics of fraud means are mainly to use the more complex revenue and cost recognition mode of film and television project transactions to manipulate revenue and affect profits.It can be identified by non-financial signs such as abnormal behaviors of controlling shareholders and actual controllers,customers and suppliers,inquiries from regulators,and financial index characteristics such as income,gross profit data and income related accounting policy changes or error correction.Then,using the financial fraud risk factor theory to analyze the case of Beijing Culture,this paper draws a conclusion: from the perspective of individual risk factors,the causes of fraud include low moral quality of senior management,alleviating business pressure and issuing convertible bonds;From the perspective of major risk factors,there are defects in corporate governance and internal control,and the strength of internal and external audit is insufficient.Besides,the punishment is far less than the benefits and the difficulty of protecting injured investors are also reasons.Finally,the countermeasures are as follows: First,strict industry self-discipline and supervision,strengthen and improve the moral construction of management;Second,improve the output quality of film and television works and explore and enrich financing channels;Third,improve the corporate governance environment,strengthen the construction of internal control of film and television projects,and issue accounting operation guidelines for the film and television industry;Fourth,strengthen the audit role of CPA,encourage the masses to supervise and report,and enhance the vigilance of regulatory institutions;Fifth,strengthen the punishment of fraud.This paper studies the characteristics of financial fraud in the film and television industry,and selects Beijing culture,a listed company officially punished in August2021,as a case.Therefore,the analysis has timeliness,representativeness and novelty.On the one hand,it helps regulators formulate countermeasures and protect the interests of small and medium-sized investors.On the other hand,it can also warn other listed companies in the film and television industry,so as to promote the future development of the film and television industry and maintain the order of the capital market.