Research On Financial Fraud Of Listed Companies In General Equipment Manufacturing Industry

With the rapid development of the securities market and the improvement of the regulatory system,the number of investors in our country is growing,and the amount of investment has reached a peak.However,as the main component of economic society,listed companies still need to improve their information disclosure.In recent years,financial frauds of listed companies have emerged in an endless stream,which are still prohibited repeatedly under the situation of strict supervision by regulatory agencies.Since the second half of 2011,China’s general equipment manufacturing industry has entered the downward range of the industry,and numerous companies’ operating performance has declined,and they continue to face losses.In this context,some management of listed companies attempt to use information disclosure fraud to hide the real performance and beautify the statements.Therefore,it is of great significance to explore the causes of industry fraud for reducing fraud cases,restraining and eliminating the induced factors of financial fraud from the root,saving regulatory resources and improving the quality of financial report information.Kunming Machine tool,as a typical example of fraud in general equipment manufacturing industry,has a long time of fraud,a large amount of fraud,and a serious fraud.Based on the description of financial fraud in general equipment manufacturing industry,this paper selects Kunming Machine Tool as a case study and analyzes its fraud means.Then,based on the perspectives of internal organization,market demand and government supervision,this paper makes a deep research on the fraud causes of Kunming Machine tool,and finds that the corporate governance structure is not perfect and effective and can not adapt to the demand structure of machine tool market The main reasons for the occurrence of Kunming Machine Tool fraud are the change of listed companies and the too light punishment of audit institutions by regulatory agencies.Based on the above reasons,this paper believes that enterprises in the industry can reduce the risk of fraud from the aspects of increasing the participation of small and medium-sized shareholders,introducing institutional investors,adjusting the product structure and improving their own profitability;the regulatory authorities can restrain the frequent occurrence of fraud by improving the relevant laws and regulations,and improving the punishment to the derelict intermediary agencies,the listed companies and their management.