Based On Investor Protection Perspective, Boyuan Investment Financial Fraud Game Analysis

Over the years,the listed company financial fraud phenomenon was to be baned repeatedly.All kinds of the fraud cases of listed companies are often caused by extensive research in academia,and as a typical representative of the financial fraud means.A series of regulations in China specify the quality of financial information disclosure of listed companies,but there are many illegal activities.In November 2014,the government had issued the Administrative Regulations on the Reform,Improvement and Implementation of the Delisting System of Listed Companies,which is one of “the most severe delisting system in history”.Zhuhai Bo Yuan Investment Co.,LTD,also known as the Phoenix in A-share,became the first delisted institution,due to illegal information release and regulation violation.But when Bo Yuan Investment was in the process of delisting,many retail investors still took the attitude of speculation.This resulted in a total turnover rate of as high as 368.72%,in a period of 30 trading days before the stock delisting.Mostly,this phenomenon can be traced back to individual investorsBased on this background,I'd like to cite Bo Yuan as a typical case for in-depth analysis and discussion.Several approaches are used in this essay,: literature review method,case analysis method and the game model,all of which are applied to analysis of mixed game between Bo Yuan and retailers.This strategy fully illustrates what should be done to protect the investors' interests in the stock market.On the one hand,the methods of financial fraud are under scrutiny,in the purpose of forwarding a correct investment idea.The article is divided into five chapters and three parts.The Chapter Five,four conclusions have been made: 1)The higher the cost of Bo Yuan Investment fraud activities,the smaller the possibility of financial fraud.2)The more likely that the investors give professional analysis of accounting information,the less likely that Bo Yuan cheat in the stock market.3)The higher the financial reward of Bo Yuan's speculation,the higher the possibility of deceptive activities.4)The lower the cost of professional investment analysis,the less possibility the financial fraud.Apart from the above four sections,five constructive advice has been made so that retail investors can obtain more assistance in dealing with financial fraud of a listed company.This article,through a summary of the case and the analysis of the reasons,puts forwardthe corresponding preventive countermeasures.We hope that it can improve the quality of financial information disclosure of listed companies,safeguard financial fraud of listed companies,and protect the rights and interests of medium and small investors.