Study On The Financial Fraud Of Wanfu Shengke

This thesis is based on the analysis and research of financial fraud case ofWanFu ShengKe (WFSK), consisting of six chapters. The main content of eachchapter is: The first chapter is Introduction part, introducing the research background,significance and the research situation at home and abroad of of the thesis. Thesecond chapter gives definition of financial statements and false financial reporting,and lists the results, features and influences of financial fraud. The third chaptermakes a comprehensive analysis of the development background, causes, featuresand impacts on the market of the WFSK financial fraud. It is concluded that theoccurrence of that is inevitable, as a result of concentrated ownership structure,useless internal control, and push from intermediary agencies and local government.The recurrence of another astounding financial fraud makes a heavy blow on thealready precarious Chinese security market. However, the advance compensationmode for investors of WFSK financial fraud forms an important flag of the currentsecurity market, which will lead Chinese security market to explore the protectionsystem for medium and small investors. As a result, the misdeed of financialcounterfeiters will be stopped and the system will provide valuable experience forthe improvement of legal system, implementation program and measures of Chinesesecurity market.The fourth chapter makes a deep analysis of causes of the occurrence of WFSKfinancial fraud in Chinese capital market, and gives a detailed explanation of thefrequent occurrence of financial fraud in capital market. From the viewpoint ofinternal structure of the fraud enterprise, it is mainly caused by the excessiveconcentration of ownership and nearly useless internal control. From the perspectiveof external factors,the main reason is caused by the weakness of the supervisoryauthority of Chinese capital market, resulting in the occupation of intermediaryagencies and jointly push from contractor-alike and pipeline-style operatingmechanism and local government. The fifth chapter proposes the insights bases on the reflection of continuous similarfinancial fraud cases in the capital market. It is suggested that: the supervision offinancial staff should be enhanced; the benefits protection of medium and smallinvestors should be strengthened; the punishment of jointly liability should beelevated; promote internal control of the enterprise; improve the service quality ofthe intermediary agencies; perfect the supervision of local government. The lastchapter is the conclusion part of the thesis. After the comprehensive research oftheory explanation and case analysis, on the center of the key problem, the authorproposes some prospects for the future capital market form different sides. Herpersonal view of precaution of enterprise financial fraud and protection of investorsbenefits is embodied in this chapter. It is believed that this thesis is of greatsignificance to the fundamental governance of enterprise financial fraud.