Research On *ST BoYuan Financial Fraud Recognition And Motivation Case Studies

The history of China’s capital market development has only more than 20 years, but financial fraud occurred endlessly. The financial fraud caused a huge shock, and caused the bad influence to China’s capital market, not only seriously damaged the interests of investors, but also made against the rational allocation of social resources.It has become a big public hazard in the national economic life. Therefore, it is of great significance to strengthen the research on financial fraud recognition, motivation and control measures of listed companies constantly. This paper is based on *ST Bo Yuan which is the first share to be ended in the A-share market because of major violations as the research object to study the financial fraud of listed companies. I hope that our country can strengthen prevention and control of the financial fraud and promote the healthy and orderly development of capital market.Firstly this paper introduces the background of *ST Bo Yuan and the company’s behaviors and processing results of the financial fraud. Next, it identifies signs of financial fraud based on financial statements data and financial indicators of the company. Later, the article uses fraud factors theory which combine general risk factors and individual risk factors, analyzes the fraud motivations of *ST Bo Yuan from the five aspects of moral quality and integrity, the fraud motivation, the chance of fraud, the exposure possibility of fraud, the punishment. Finally, this paper puts forward five proposals to regulate the capital market and listed companies’ financial behaviors from improving management performance evaluation index, improving the company’s internal control, enhancing the role of accounting firms, strengthening law enforcement and improving the professional ethics of the relevant personnel.