Study On Financial Fraud In Mergers And Acquisitions

In recent years,the rapid development of China's economy has made China's securities market has also been greatly promoted.For the majority of investors,the basis that they can use to determine how to invest in securities is mainly public financial information disclosed by listed companies.The rapid economic development has made the new economy and the new financial situation more and more complex.According to the public information on the official website of the China Securities Regulatory Commission,illegal information disclosure,fraudulent investors,mergers and acquisitions and restructuring frauds have become more frequent.Whether it is the number of frauds,the length of fraud,or the amount of fraud,the entire capital market is shocked.The false financial information in the reorganization obscured the company's true business performance,distorted the true value of the company's shares,seriously misled the investors,caused irreparable losses,and affected the stability of the social order and China's securities market and social economy's healthy development.The China Securities Regulatory Commission promulgated the "Measures for the Administration of Major Asset Restructuring of Listed Companies" in2016,aiming to warn and deter those chaotic phenomena such as "flicking" that are occurring and attempting to be carried out.How to fundamentally prevent and eliminate the occurrence of financial fraud in mergers and acquisitions is also a topic that many scholars have been paying close attention to.Therefore,in the future development,the analysis and research results of financial fraud cases in mergers and acquisitions and restructuring frauds should also be taken as reference.The paper uses the combination of theoretical analysis and case analysis.The theoretical part elaborates the definition of financial fraud,motivations,means,merger and reorganization theory,and other content.The case analysis section first introduced the basic situation of Zhejiang Jiuhao Office Service Group Limited company and Anshan Heavy Mining Machinery Limited company,the process of the financial fraud incident,and the consequences of the financial fraud.Second,it analyzed the financial fraud behavior from various angles,a detailed analysis of financial fraud measures,internal and external factors,and case impact analysis.Through analysis,it is found that: corporate interest claims,problems in governance structure,and failure of internal oversight mechanisms are the internal causes of fraud;thehuge benefits of the securities market are not commensurate with the low cost of illegality,the inaction of intermediaries,and the abuse of social supervision in the form of fraud are the external causes of fraud;the case effects include the fluctuation of the company's stock price after the fraudulent incident occurred,the decline of the company's public credibility and brand image,and the damage to the interests of the company's stakeholders to varying degrees.Finally,the paper summarizes the suggestions for enlightenment from four aspects: strengthen supervision and punishment,strengthen social supervision,strengthen the company's internal control and promote the integrity of the whole society.