Study On Financial Fraud Of China Listed Company

In recent years, more and more malignant cases of financial fraud in China listed companies happen frequently, which result in severe damage to the capital market and a serious impact on the confidence of investors. Go deep into the study on causes and means of listed company financial fraud and find out the countermeasures are important and significant to protect the interests of investors and promote the healthy development of the securities market in our country.The study is under this background, and the thesis starts from the review of related concepts and research theories of financial fraud, and then analyzes the causes from motivation or pressure, opportunity, and attitude or excuse, those three aspects according to the theory. Profit driven, vanity and performance pressure, with failure of internal governance structure and external governance mechanism, and also the moral integrity issue are considered as key factors to causes of financial fraud. Furthermore, this thesis interprets ten means which are commonly used in China listed company for financial fraud based on statistical results of China Securities Regulatory Commission’s administrative punishment decisions in recent years. After this, a typical case of Wanfu Biotechnology financial fraud is used to analysis the causes, means and characteristics of China listed company financial fraud, hope that can put forward some concern. Based on the theoretical analysis of causes and the case study above, this thesis further discusses the underlying causes of financial fraud in addition to those three aspects from the view of theoretical analysis, and points out that the capital market system is imperfect, the supervision of law enforcement system is not complete, the CPA management mechanism is not perfect, and the accounting standards and accounting regulations have holes are causes behind them, and proposes preventions and countermeasures from internal corporate governance and external regulatory perspective aim to eliminate those causes to listed company financial fraud. At last, the thesis concludes the study and calls on more people to pay more attention and supervision for the healthy development of China’s securities market.