Study On Financial Fraud Of Nine Top Group In The Merges And Acquisitions

The continuous improvement of the capital market in China will makes our economy securitization rate incerase steadily.As an important operating platform of an enterprise improving asset quality and the national adjusting economic structure and transforming the economy,the merges and acquisitions(M&A)has a certain scale and has a strong following momentum in China in recent years.However,in the process of M&A some enterprises are willing to take risks,which can help them increase the profits of enterprises and even achieve the purpose of back-door listing by means of financial fraudulent behaviors,such as whitewashing financial statements and regulating profits.The adverse effects caused by M&A financial fraud will not only harm the interests of investors,but also hinder the healthy development of the securities market.Therefore,the regulatory powers of the securities market must give full and effective play to its supervisory functions,because it plays a crucial role in the long-term development of the securities market.This paper reviews the well-known literatures at home and abroad.On the basis of above research,this paper adopt the method of integrating theory with practice,and select the financial fraud case of Nine Top Grope M&A ANZHONG CORP to study and put forward how to improve the regulatory system,reduce financial fraud and the bad influence of M&A on the securities market.There are seven parts,at the first chapter,this paper mainly introduces the background and significance of the research on the financial fraud of M&A,and also shows the research content,research methods and the innovation of this article.The second part lists the research fruits of scholars abroad and inside.The third part illustrates the current situation of financial fraud in M&A in China,summarizes the development and changes of the regulatory system for M&A,and also summarizes the dangers,motivation,income and bank deposits fraud in the M&A financial fraud.It is a process review and introduction of the case in the part four.It is a concrete analysis for this case,including the analysis of the corrupt drivers and regulatory defect analysis of the Nine Top Group in the part five.Based on the all of the above analysis,it will purpose the suggestions and improvement for the regulatory agencies from the source of counterfeiting and the practical application and then restraint M&A in the company's fraud behaviors in the part six.It is the summping-up,shortcomings and prospects of this study in the part seven.This paper thinks that that the deep excavation of the cause of fraud can help to prevent and control the financial fraud in the mergers and acquisitions.The article dissects Theory of Fraud Risk Factors,which includes moral quality,motive of fraud,opportunity of potential fraud,opportunity of fraud detection,and the degree of punishment.The factors of M&A financial fraud include bad moral character,the need to pursue interests,the neglect of auditors and the weak punishment.In this paper,the author tries to put forward reasonable suggestions for the scientific improvement of China's regulatory system through researching the causes and regulatory problems of Nine Top Grope's merges and acquisitions financial fraud.At the same time,it is hoped that the security market will be stable and transparent,and the legal rights and interests of investors could be protect well.Therefore,the author purposes the following practical suggestions for the above reasons.Before M&A,it should play down the judgement of profitability.In the process of M&A,the independence of intermediary institutions should be strengthened,and the media supervision should be used to broaden the reporting channels.After M&A,the punishment should be increased and the civil compensation mechanism should be improved.