The Study Of Financial Fraud In Modern Economy

"I don't know how a man without truthfulness is acceptable",the virtue of honesty has always been a fine tradition of China and the cornerstone of social development.But now,with the continuous application of new information technology,the Internet and so on,our market is facing an honesty crisis.The financial sector has been constantly exposed to a variety of fraud.As everyone knows,people's asset structure is generally comprised of financial asset and real estate and other immovable properties.Therefore,once encountering financial fraud,the first thing that people lose is financial asset,the loss of assets is fast,the amount of which is large,financial fraud from the premeditation to the implementation and then to the substantial economic loss of the victims is generally accompanied by a time-lag and concealment,so it is difficult to detect and stop financial fraud in the first time.Therefore,the consequences for each victim of financial fraud are often unbearable,the negative impact caused by financial fraud on the people's asset security,mental state and the stability of the entire financial order is difficult to measure.Consequently,it is imperative to find an effective financial anti-fraud path.This paper mainly discusses the concept,definition,characteristics,mechanism and prevention of financial fraud under the circumstance of information asymmetry.The research ideas of this paper are as follows: Firstly,through the analysis of the phenomenon of fraud and financial fraud,the concept and characteristics of fraud and financial fraud shall be given and the similarities and differences between fraud and financial fraud shall be illustrated.Secondly,theoretical analysis and empirical analysis of financial fraud shall be conducted.This paper argues that the prevalence of information asymmetry provides the prerequisite for the implementation of financial fraud,through the analysis,this paper discovers the mechanism of financial fraud,arguing that the key to preventing financial fraud is to reduce the degree of information asymmetry between the two sides of the transaction,to increase the transaction cost of fraudulent implementers and to reduce the recognition cost of fraud.On the basis of theoretical analysis,in this paper,Logistic model is used to analyze the cost-benefit of financial fraud,arguing that the cost of financial fraud consists of two aspects,one part is the internal costs,that is,the implementation costs of fraud;the other part is external costs,that is,the penalty costs,also called social costs.The model proves that internal costs and external costs are key factors that affect the fraudulent implementation.Fraud will occur when fraudulent gains are greater than the sum of internal and external costs.Therefore,we increase the internal costs of fraud by reducing the degree of information asymmetry,and reduce the external costs of fraud,which is conducive to financial anti-fraud.Finally,combined with the previous theoretical analysis,it is concluded that reducing of the degree of information asymmetry between the two sides of the transaction by a variety of means and increasing the costs of committing the crime of financial fraud implementers upon the implementation of fraud as well as penalty costs are conducive to the effective prevention of financial fraud,meanwhile,this paper gives the policy recommendations to reduce the information asymmetry between the main financial market transactions and increase the supervision.The theoretical research and empirical research on financial fraud is to better understand the mechanism of financial fraud and how to carry out financial anti-fraud work effectively.This paper hopes to analyze the essence of financial fraud from a new perspective with the analysis method of economic theory,and to provide some suggestions for the financial anti-fraud path.