Research On Financial Fraud Motivation And Governance Strategy Of Listed Companies

Financial frauds have repeatedly occurred in listed companies. This shakes the foundation of the creditability of market economy on the one hand, and gives rise to market credit crises on the other hand. Financial frauds badly impair the roles of capital in allocating resources in the whole market. In time, there arise inefficiency and instability, from which socialistic market economy will suffer. China’s regulatory authorities of securities have taken measures to reform, such as strengthening supervision and specifying relevant indictors and criteria. These measures, to some extent, curb financial frauds. Nevertheless, fraudulent behaviors are not overall diminished with the perfection of the measures on securities supervision. Conversely, financial frauds are getting from bad to worse in listed companies, in that financial informants and companies can reap profits. Worse still, fraudulent behaviors are conducted in more covertly, and tricks are played in more intricate ways.The present research is a case study of the financial frauds in Wanfu Biotechnology Company. This thesis has investigated the reasons and tricks of financial frauds and put forward some countermeasures accordingly, in the hope of identifying fraudulent financial behaviors effectively, guaranteeing the smooth operation of capital market and presenting constructive suggestions on fighting against financial frauds.