A Case Study On Financial Fraud Of NANTEX

With the development of the capital market,the stock market has become the major financial channel which is causing various companies to inject capital and be listed in order to seek development.As a result,maintaining a sound order in China's capital market has become a necessary condition for the healthy development of China's economy.However,in China's capital market,financial frauds have become nothing new in listed companies such as from Dawn Garments Co.,Ltd.,Zhengzhou Baiwen Co.,Ltd.and Yinguangxia to Yunnan Green-Land and Wanfu Biotechnology in recent years,and all these cases have shocked China's capital market,harmed investors' interests,brought negative effects on the society,disturbed the normal order of China's capital market and hindered the healthy development of the securities market.Therefore,it's of great theoretical and practical significance to study fraud cases in listed companies in order to prevent the occurrence of financial frauds.Foreign countries have conducted more studies on financial frauds,which is of great importance for our country's reference.Considering China's fundamental realities and available foreign studies,this paper aims at exploring China's financial frauds by combining theoretical studies with case studies.The financial fraud case of Nanjing Textiles Import & Export Corp Ltd.(hereinafter referred to as Nantex)has caused a great uproar in China's capital market and is called the "First Fraud Case In A State-owned Enterprise In The Past Ten Years”.By studying this case,this paper makes an analysis of the financial fraud of Nantex based on the fraud triangle theory.This paper is divided into the following chapters: Chapter One,or the Introduction,introduces the background and significance of this topic as well as the contents and ideas of the study.Chapter Two,or the Literature Reviews,generally summarizes and evaluates relevant domestic and foreign studies on performance,motivation and prevention of frauds.Chapter Three makes an introduction of the involved company,demonstrates the theoretical knowledge that needs to be applied in this case,makes an in-depth analysis of the Nantex case and studies the company's financial fraud from its performance,motivation,consequence and prevention.Chapter Four is a summary of the analysis of this case and gets some measures and inspirations to prevent financial frauds.The study of financial frauds in listed companies is an eternal topic in the securities market.While there are many problems in financial information disclosure in our country,the accuracy and timeliness of the information disclosed play a key role in a company's development.False financial information has greatly harmed the interests of investors and the orderly development of the securities market.Therefore,it's very necessary to make an in-depth analysis of financial frauds in listed companies.By analyzing the Nantex fraud case,this paper is intended to solve loopholes in the supervision of financial frauds in listed companies and puts forward preventive measures to avoid the occurrence of frauds.This paper also requires listed companies provide true and credible financial information in order to improve China's prevention system against financial frauds.