Research On The Motivation And Governance Of Financial Fraud In K Company Based On Triangle Theory

After experiencing nearly 30 years of exploration,China's capital market has now formed a considerable scale,occupying half of China's economic aggregate,and has played a great role in promoting the national economy.However,while the capital market is advancing rapidly,many problems are emerging.The financial fraud in listed companies is common.From 2014 to 2018,more than 10 listed companies are punished for financial fraud every year on average.The frequent occurrence of financial fraud has become a stumbling block to the healthy development of China's capital market.From the well-known Enron incidents abroad,to Lantian,Yinguangxia,Wanfushengke etc.incidents in China,the fraudulent behavior of listed companies not only affects companies' own development but also has caused huge losses to investors and their confidence.Therefore,in order to reduce the frequency of fraudulent behaviors,it is of great significance to study the causes of fraud and seek countermeasures against fraud.This article conducts a series of research and analysis on K company fraud cases.It is of certain value to regard K company fraud,which is representative and typical,as a target case study.K Company is a listed company with the label of “State-owned Enterprise”.It has a very long history,and it is of great significance to study its experience.Moreover,the fraud time lasted for four years,the amount involved was huge,and the fraudulent means were relatively hidden,which had a bad influence on the stock market.This paper adopts the method of combining theory with case analysis.Firstly,through the analysis of domestic and foreign documents,it summarizes and reviews the research results related to financial fraud topics made by scholars in the past,and then elaborates the definition,characteristics and harmfulness of financial fraud.Meanwhile,the theory of fraud triangle and other methods of fraud motivation are systematically arranged and summarized,to provide theoretical basis for the later research.In addition,this paper cuts into the case analysis by reviewing the implementation of K company's financial fraud behavior.After analyzing the K company's fraud practices,it makes a thorough analysis on the motives of fraud,with the theory of fraud triangle and the combination of theories and cases,and from three aspects of stress,opportunity and excuses.After analyzing the motivation of K company's fraud,it also proposed the countermeasures against fraud management from the three factors of triangle theory.First,use the expansion of financing channels and improve the delisting system to alleviate the pressure of fraud.Secondly,strengthening the internal control system of the company,improving the quality and intensity of the company's external supervision and taking advantage of the forensic accounting tools to reduce fraud opportunities.Finally,relying on strengthening the management of management and accounting personnel and creating a corporate culture of integrity to eliminate fraud excuses.In order to enlighten K company and many listed companies in the capital market,it also offers some suggestions on dealing with fraud in the securities market,which provides a reference for preventing and controlling financial fraud in the future,promotes the company's healthy and sustainable develop,and maintains the stability of the securities market.