The Research Of The Financial Fraud In The Listed Company

Since the reform and opening up of China, China’s economic development has madeevident achievements. And the importance of the economic development is well known, andit has been put into practice. Now Chinese people care much about the economic which is agood thing. But one old proverb says “No weal without woe.” In some sense, bad effect isinevitable. Chinese people now care too much about economic. Thus, it is easily for people toprone to bias due to the interest in corporate governance. And financial fraud becameinevitable, especially in listed companies. Financial fraud as a malaise of contemporaryeconomic which hinder economic development in China is very clear.Currently, the methods of financial fraud become more and more varietal andsophisticated. People from different countries concerns about the countermeasure of thefinancial fraud and the solution to reduce the harm to the whole society. Because these peoplecare about their interest only. China, as a developing country, its economy is in a high-speeddevelopment period. Besides, the laws and regulations are not so perfect. Thus, the financialfraud faced by China is particularly prominent. It is imminent to come up with effectivesolutions. Moral condemnation has been difficult to change them on financial fraud, and ourlaw is still lacking on this issue.This paper is mainly combined by the introduction, the first part of the listed company’sfinancial fraud overview, the second part of the comparison between statutes and case studies,the third part of several legislative proposals dealing with financial fraud and a brief summaryof the fourth part.Introduction part mainly describes the background and the significance of this article. Itincludes the study purpose, the general thought of the research and the writing method of thethesis.First,"Overview of financial fraud in listed companies". This chapter describes in detailthe probability of financial fraud and simple description of the current situation of listedcompanies ’ financial fraud. The description of the current situation of financial fraud is fromtwo main areas, they are present situation of China’s financial fraud and the United Statesstatus of financial fraud.Second," The comparative study of the legislation and case of China and the USA". This chapter includes the relevant legal provisions and their application in China, United StatesSarbanes–Oxley Act, and the application of the relevant provisions of the China and theUnited States. Relevant legal provisions and their application in China is analyzed from theomnibus law, the Chinese version of the Sarbanes-Oxley Act, and the actual situation of threefinancial fraud case described in detail. The second part describes the background of theUnited States’ Sarbanes-Oxley Act and the specific provisions in the Bill. It highlights thecontents of No.302and the section404. Finally, it analysis United States Southern Health’sfinancial fraud case in simple. And the third part is a simple comparison of both the twocountries.Third,"Several legislative proposals dealing with financial fraud". This chapter gives adescription on the basis of the recommendations. And then make several specificrecommendations through the two chapters’ variety descriptions. The recommendations aremainly from two areas: the internal environment and external environment of thecompany.And the internal environment of the company consists of three main areas:legislative proposals to management, supervision of the legislative recommendations andlegislative proposals to finance. The external environment includes: the form of action form,the burden of proof and punishment.The last one is a simple conclusion on the basis of the whole text.