Study On The Formation Mechanisms And Counter-measures Of "Private Offer"

The word private coffer stems from the folk society. As a characteristic Chinese economicphenomenon, the existence of private coffer not only disturbs the normal order of marketeconomy, impacts normal operation of enterprises, but also results in loss of state assets, damagesnational interest, and even breeds corruption and breaks party-masses relationship. Since theestablishment of People’s Republic of China, China has successively carried out special work togovern private coffer time after time. However, private coffer problem always reappears aftergovernance and containment. As private coffer problem does serious harm to the society and iseasy to relapse after governance, research on this theme is very necessary and imperative.From the perspective of fraud triangle theory and through using literature material and caseanalysis method, this paper firstly discusses the meaning, characteristics and perniciousness of"private coffer "and secondly, it utilizes fraud triangle theory to study formation mechanism of"private coffer" and puts forwards that formation of private coffer depends on three factors, i.e.pressure, opportunity and self-rationalization. Among these factors, benefit is the dominant motiveof formation of private coffer; multi-level principal-agent relation, imprecise internal controlsystem, poor external environment and imperfect legal institution provide opportunity for theformation of private coffer; and weak legal consciousness and vague ideological understandingprovide the formation of private coffer with excuse. Then, this paper comes up withcorresponding measures, i.e. strengthening publicity and education, perfecting financial evaluationindex and completing profit distribution system are necessary for alleviating fraud motivation, andcooperation of enterprise, society and government is needed to reduce fraud opportunity, andreinforcing legal institution and credibility education, establishing social credit supervision systemand enhancing professional ethics regulation are needed for removing fraud excuse. Researchresults of this paper provide theoretical foundation for China to establish and perfect legal norm andfor enterprise and public institution to set up private coffer internal control system.