Yangmei Chemical Financial Fraud Case Studies

Since people entered the 21st century, the problem of financial reporting fraud of listed companies has become the focus of a global problem. According to the United States against fraud financial reporting council \"financial reporting fraud is due to intentional or reckless do zhang, and form the misstatement or omission, resulting in significant misleading financial report\". In future financial reporting analysis,financial fraud is defined as financial statements or financial disclosure exists in the intentional misstatement or has a significant direct effect on the financial statements or financial disclosure of illegal behavior. At home and abroad in recent years, many listed companies reported a shocking financial fraud, severely weakened the confidence of investors. In December 2001, was once the world top 500 in the enron filed for bankruptcy, the bankruptcy of enron "greatly influence the capital market, seriously damage the credibility of the capital market, shook the confidence of investors. In the enron accounting fraud after Revelations, have again showed the worlcommunications, xerox and so on the company’s financial fraud, it had a strong influence on the stock market, the New York stock market fell sharply lot, at the same time also to the international big five accounting firm Arthur Andersen accounting firm, one of the fatal blow, make its bankruptcy, and the American people and investors all over the world are lack of sense of security investment.Our country the financial fraud scandals of listed companies is also continuously. From the end of the 20th century to the early 21st century, successively appeared Joan MinYuan, red light industry, boiler, abandonment, Zheng Baiwen east, Monkey King, cao huge losses, sichuan changhong financial fraud, such as huge receivables owed case since the "blue sky", silver, since the construction of financial fraud in China securities financial fraud scandals frequently appear on the market, then the green earth, Wan Fushen and Revelations in 2013 and the biggest fraud by YangMei chemical financial fraud scandals, the financial fraud caused a huge shock, China’s capital market and caused the bad influence, not only seriously damage the interests of investors, and cause serious damage to the reasonable allocation of social resources and the development of securities market, has become a big public hazard in the national economic life.Based on the analysis of YangMei chemical in the deep reason of financial fraud, taking GONE theory as the theoretical basis, from the perspective of financial management of the YangMei chemical financial fraudulent practices and performance, this paper analyzes the deep reason YangMei chemical financial fraud, and fraud occurred for the reason, put forward some countermeasures and Suggestions.Main research content of this article is divided into six parts:The first part is the introduction. First of all, the paper puts forward the research background and significance of this article. Secondly, from the definition of financial fraud GONE theory, the theory of financial fraud GONE, GONE the classification of the theory of financial fraud choose four aspects respectively introduced the research status at home and abroad. Finally, this paper introduces the structure of the article, and shows the research method adopted in this paper.The second part is the introduction to the theory of financial fraud related. First, the definition of financial fraud made a simple description. Second, details thefinancial fraud of economic theory and motivation theory. Finally, the necessary of the characteristics of financial fraud. Adoption of this article is that in 2013 and the biggest financial fraud ever YangMei chemical case as an example, analyzes the deep reason of its financial fraud. The full text is divided into development provides a theoretical basis.The third part is YangMei chemical technique and manifestation of financial fraud. This part firstly introduces the YangMei chemical company, the company operating and financial conditions; Then analyzed YangMei chemical financial fraud technique; In the final analysis the YangMei chemical financial fraud. This paper argues that YangMei chemical technique and manifestation of financial fraud is mainly: inflated income; Improper accounting information disclosure; The affiliated partynon-operating capital takes up; "Three" (the shareholders meeting, board of directors, board of supervisors) operation is not standard; Executives; Auditors frequently change is an important signal of financial fraud.The fourth part is YangMei chemical financial fraud causes analysis. First of all, the deep reason GONE theory analysis YangMei chemical financial fraud, fraud causes a, YangMei chemical company executive greed, to steep profits, grab a big interests, restructuring listed. Secondly, according to theory of GONE, YangMei chemical internal control is flabby, external supervising provides opportunities for fraud. Again, YangMei chemical industry to reduce the debt service pressure, alleviate the economic crisis, meet the demand of regulatory requirements is the fraud. Finally, the probability of financial fraud was found to be small, found after been penalties YangMei chemical light fuel on the financial fraud.The fifth part is the management of financial fraud. YangMei chemical financial fraud, for example, by analyzing the deep reason YangMei chemical financial fraud, against its fraud causes, put forward the related Suggestions.The sixth part is the conclusion. Summarizes the main conclusion of this article, and points out the limitations of this study and the direction of further research in the future.