Prevention Of Listing Corporation Management Fraud In China

Capital market provides a good platform for raising funds, and it is the main places for financing and refinancing of the listing Corporation. In the capital market, information is also very important and exist everywhere, the quality of information determines whether the capital market is effective directly. Because of the information comes from all aspects, through various channels, various ways in the capital market, therefore, the "good faith" play a decisive role in the capital market. If the listing Corporation violates the principle of good faith, making a false financial and non-financial information, market manipulation, will cause the stock price fluctuation, bring huge economic losses to the stakeholders, disturb the market rule, and even endanger the security of national economy. Since the end of twentieth Century, China’s listing Corporation fraud cases have being exposed, while the previous century fraud case number has decreased, but the fraud phenomenon still repeated. Because of the special status of listing Corporation, scope of the influence brought by its improper behavior is wide, the consequences are serious, not only harm the interests of investors and creditors, but also disturbs the economic order of market. Through the analysis of deep-seated reasons behind these scandal, we can find that the initiator of these phenomena is the management. What means of the management used to fraud? Why management fraud? What are the conditions that contributed to the management fraud? How to prevent the management fraud? These will be the focus of academic research about management fraud.It is out of this background, we shall pay enough attention to listing Corporation management fraud, make a comprehensive analysis of the fraud motivation and means, explore several realized and strong measures to protect China’s economic security and order, realize the healthy and sustained development of capital market. Otherwise, management fraud will run out of tyranny in the capital market of our country, do harm to the development and normal operation of China’s capital market and the socialist economy. So far, foreign scholars’ relevant research on management fraud is more profound and thorough, our country can learn from the foreign research achievements and experience in the prevention and treatment of management fraud, but considering China’s special political system and economic system, laws and regulations, research on listing Corporation management fraud in our country should proceed from the actual situation of our in China, based on China’s basic national conditions.Based on predecessors’ related research about listing Corporation management fraud and its prevention measures, drawing on relevant literature and policy of domestic and abroad, combined with the actual situation of the capital market of our country, using normative research method to research management fraud identification and its prevention strategies systematically. Firstly, Mainly introduces the research background, significance and research ideas and methods, and reviews the domestic and foreign research literature. Then introduce the theories about management fraud, discriminate management fraud and its relevant concepts to highlight the characteristics of management fraud. Secondly, analyzes current situation, motivation, commonly used method and warning signal of the listing Corporation management fraud in China. By collecting data of listing Corporation that be punished by CSRC, with complete analysis of the data obtained, concluded that the listing Corporation management fraud in our country is banned repeatedly and the means is varied. Then, according to the fraud "GONE" theory, from the need, opportunity, greed and exposure, the four aspects, to analysis management fraud motivation. Thirdly, in view of four factors of management fraud motivation, put forward the corresponding countermeasures, with a view to strengthening the supervision of management fraud, reduce the occurrence of management fraud, improve China’s relevant laws and regulations, accounting standards, the efficiency of capital market, safeguard the interests of stakeholders in the macro; at the micro level, improve listing Corporation internal business policy, governance structure, promote the quality of information disclosure and management’s sense of integrity.