Yunnan Green Earth Company Financial Fraud Case Analysis

Although the companies in China was born not long ago, the growth speed of which is quite amazing, at present in our country is now a very large proportion in the national economy, its influence to be reckoned with. But due to the rule of law can’t keep up with the development of economy of form a complete set, which presents a series of malpractice in the securities market, and disregard for the interests of the company’s stakeholders and trample the phenomenon is not surprising. As a result, the serious influence our country securities market is growing up.Under this background, this article to the green earth company’s fraud, for example, a sign of fraud related to, means, reasons and influence on all aspects of stakeholder analysis. Research results show that the green earth financial fraud is not only the need of its own interests, but also with the intermediary institutions is not diligent due diligence and relevant government regulators closely related regulation, serious impact, violate the interests of stakeholders, but also restricted the healthy development of securities market in China. Therefore, combined with China’s specific national conditions, this paper puts forward some feasible Suggestions, in order to better safeguard the interests of the stakeholders.In financial fraud incident, small and medium-sized shareholders and creditors, employees is the first victim, they should be actively involved in the corporate governance, to monitor their behavior, in order to better safeguard their own interests. At the same time, the outside world also should combine regulation and related law, implement a full range of control. Securities regulatory commission(CSRC), intermediary agencies and media combined three system, fully eliminate the infringement behavior of stakeholder interests. Response to the financial fraud is the most important measures, is in a timely manner, strict punishment, and to give stakeholders the reasonable economic compensation. In fact, to truly protect stakeholders, cannot leave the relevant essential legal system.This paper pays attention to the combination of theory and practice, combining theoretical derivation and analysis of actual case, discusses the situation and solution to protect the interests of stakeholders. But due to the difficulty of the problem and my limited level, there are still some unsatisfactory and drawbacks, especially relevant legal measures is not considerate. However, I hope this article can provide a reference.