Study On Motivation Of Dandong Xintai Electric Co.,Ltd Finacial Fraud Based On GONE

Stability and healthy development of the capital markets is the key to guarantee economic stable and sustainable growth in a country.However,the existence of many factors,such as the lack of profit-driven and supervisory system,makes the phenomenon of financial fraud common in the capital market of our country.This kind of phenomenon has a negative impact on the stability and healthy development of the capital market.the company involved in financial fraud dare to defy the law,the use of various means to whitewash its earnings,with its deep-seated reasons.Therefore,it is of great practical significance to study the financial fraud cases of typical listed companies in China's capital market,to study the causes and motivations of financial fraud,and to put forward suggestions for preventing and managing financial fraud.Xintai Electrical financial fraud case was exposed as a greater influence of the case in the near future(July 2016).Xintai Electric landed in the Second-board Market in 2014.However,it was found to exist financial fraud two years later.The main means used is the recovery of fictitious accounts receivable.The SFC punishes Xin Tai for financial fraud in July 2016.Xintai Electric submit an administrative litigation application to the Beijing First Intermediate People's Court in December 2016.The court found that Xintai Electric's first instance of the relevant illegal acts in May 4,2017.The administrative penalties from the China Securities Regulatory Commission are not improper.The decision dismissed Xintai Electric's claim.At this point,Xintai Electric is likely to become the first to be forced to withdraw from the the Second-board Market.This study uses GONE theory to analysis Xin Tai electrical financial fraud case from the "greed","opportunity","need" and "exposure" four aspects.The analysis found that the company's financial fraud and GONE theory is correspondence.At the same time,the study made a brief introduction about the company's industry background,the process of fraud,fraud,fraud caused by the harm.The countermeasures and suggestions,from this paper to prevent the financial fraud by listed companies and listed companies,mainly is directed from the analysis of XinTai electrical financial fraud.measures include: strengthening the supervision of listed major shareholders,optimizing the internal control environment and improving the board of supervisors system,improving the professional ethics of the accounting profession,weaken the local government participation,expanding the financing channels,increasingthe punishment of the responsible person,improving the audit of the accounting firm mechanisms and other measures.