Case Studies On NANTEX Financial Fraud

The information disclosed by listed companies is the key factor for investors to make investment decision, especially financial information and its authenticity is very important for investors. According to the information disclosed by China Security Regularly Commission, financial fraud cases happen from time to time in A share market. The capital market feels surprised by the more ways, longer time and bigger amount of financial frauds. The faked financial information can not reflect the real operation profit of listed companies and it has already distorted the real value of stocks. What’s more, it causes significant losses to investors especially the minority shareholders and it causes negative impact on the healthy development of our capital market. So nowadays it is very urgent to study how to prevent financial fraud and help investors protect their own interest.This thesis will take NANTEX as an example to discover the case background and how to conduct financial fraud, analyze financial fraud methods and discover the reasons for financial fraud and the consequence of financial fraud. After this, this thesis will bring out the countermeasures to deal with financial fraud and protect the interest for investors.Firstly, this thesis will introduce the related research results on financial fraud which will provide basis for the case discussion, besides this, this thesis will also introduce company profile, financial fraud summary and the measures taken to conduct financial fraud.Secondly, this thesis starts from how to distinguish financial fraud of NANTEX, then it discusses the key reasons for financial fraud and at last it discusses the consequence of NANTEX fraud.Finally, this thesis will bring up countermeasures and suggestions for preventing financial fraud and protecting the interest of investors in financial fraud event, including strengthening corporate governance and internal control in the perspective of internal management and updating relevant laws, enhancing supervision and improving auditing quality in the perspective of external supervision. It is expected that this article provides some suggestions for NANTEX to deal with the financial fraud and also advice for other listed companies to prevent financial fraud from happening.