Research On Financial Fraud Of Listed Companies From The Perspective Of Risk Factors

According to statistics,in 2018,a total of 213 listed companies were punished by the China Securities Regulatory Commission and the stock exchange for illegal disclosure.The occurrence of financial fraud cases by listed companies not only violated the relevant regulations of the capital market,but also disrupted their normal order.To a certain extent,it has damaged the vital interests of small and medium shareholders,resulting in the loss and misuse of resources.How to prevent the falsification of financial information of listed companies has become an important issue to be solved urgently in China's capital market.On July 8,2019,Fushun Special Steel received the China Securities Regulatory Commission's "Prior Notice of Administrative Penalties and Market Ban"(hereinafter referred to as the "Notification Letter"),and the regulatory department determined that Fushun Special Steel's annual report from 2010 to 2016,In the third quarter of 2017,the relevant financial data contained false records.Fushun Special Steel,as an old stateowned enterprise,produces special steel products that are widely used in high-tech and high-tech fields such as aerospace,defense and military industry.It has a decisive position in China's special steel industry.Such an excellent company has made financial frauds for eight consecutive years,with a fictitious profit of up to 1.902 billion yuan.The financial fraud of Fushun Special Steel lasted a long time and the amount of fictitious profits was high,which seriously damaged the interests of small and medium shareholders and caused a very bad social impact.This article uses the latest research theoretical risk factor theory to analyze the financial fraud incidents of Fushun Special Steel,and focuses on the internal relationship between the controlling shareholder's equity pledge and financial fraud.By analyzing the means and motives of Fushun Special Steel's financial fraud,and the impact of its shareholder's equity pledge,and using the event research method to study whether Fushun Special Steel issued an announcement before and after its controlling shareholder's equity pledge,whether it gave Listed companies bring positive benefits,and thus study the internal relationship between the pledge of controlling shareholder equity and the financial fraud of listed companies.According to the means adopted by Fushun Special Steel for financial fraud and the motivation for financial fraud,relevant suggestions are proposed to reduce the occurrence of financial fraud;and the internal mechanism of financial fraud is explained to strengthen the small and medium shareholders 'financial Fake understanding.This article finds that:(1)Listed companies with financial fraud have generally low moral qualities and weak legal awareness;(2)Listed companies with financial fraud often face greater financial difficulties and delisting risks;(3)Listed companies with financial fraud generally have a relatively concentrated shareholding,and there is a phenomenon of “one share dominates”;(4)Listed companies are less likely to be found for financial fraud and have a lighter penalty;(5)The pledge of controlling shareholders 'equity The separation of the two powers and the pledge of equity have brought negative excess returns and accumulated excess returns,all of which increase the controlling shareholder's motivation for financial fraud.Regarding the research on controlling shareholder's equity pledge,scholars at home and abroad mainly study the economic consequences of controlling shareholder's equity pledge.Few scholars combine controlling shareholder's equity pledge with listed company's financial fraud.This article studies this,thus filling the gaps in related research.