The Study Of Financial Fraud Motivation And Governance Of The Listed Companies In China

Listed companies’financial fraud from the moment generated from accounting to continue to occur, has been unable to solve, to avoid problems, financial fraud is regarded as the world stock market a heart disease. British South Sea Company shares fraud-Britain two hundred years ago the world’s first listed company audit case occurred. The United States since 2001 for the outbreak of Enron, WorldCom, Xerox, AOL and the company’s financial fraud scandal. Throughout the 20 years of the development of China’s securities market, though it has become increasingly mature and perfect, but the listed companies’financial fraud has been accompanied by the development of domestic capital markets, and has intensified the signs. For example green earth, Edmond Health Division and other companies in order to be among the capital market, financial fraud through financial fraud inflated profits; Lam shares from banks in order to "misappropriating" financial fraud through cosmetic results; Jade Bird Huaguang and other companies in order to avoid delisting, financial fraud, and so on through inflated profits. A wide variety of financial fraud means investors off guard, to the enterprise and society great harm. The evening of 16 May 2014, Nanfanggufen issued a shocking announcement, the company in 2006--2010 consecutive years of financial fraud, fictitious profits of 344 million yuan. Green Earth compared to the previous, Hail students subjects such as fraud case, Nanfanggufen means of forgery, inflated profits and the number of time-span has gone beyond. By the media as "nearly a decade of state-owned shares in the first fraud."Taking Nanfanggufen financial fraud, for example, driven by point of view, the use of the theory of fraud risk factors on the financial frauds were Nanfanggufen Motivation and motivation of theoretical analysis to identify targeted governance of listed companies according to the Financial measures against fraud. According to the case Nanfanggufen Motivation analysis found that the first moral quality to be improved, and secondly, when the Company’s operation problems, or the emergence of interests choices, the company’s executives in order to avoid delisting or financing, it is easy to produce financial fraud motivation. Again, institutional deficiencies, inadequate internal governance will provide an opportunity for financial fraud. Finally, the probability of fraud is found not high, plus even if the punishment is not to be found, then the external supervision can be said to be failure. When the opportunity moral issues listed companies, as well as the motivation of fraud, plus the presence of fraud and was found probability is low, financial fraud occurs. Therefore, this paper analyzes the factors which have led to financial fraud can these motives. Of listed companies’ financial fraud Motives and governance mechanisms are analyzed in detail, according to the theory of dynamic risk factors because of fraud. Analysis and corporate governance deficiencies, some suggestions governance of listed companies to prevent financial fraud.