Case Study On Financial Fraud Of Backdoor Listing Companies

In March 2017,the "huffing" restructuring case of Nine Top group,which shocked the whole market,was investigated by the CSRC.China securities regulatory commission(CSRC)plans to impose punishment on the two parties involved--Nine Top group,Anzhong Inc and its main responsible persons.Its sponsor,southwest securities,was investigated,while two other intermediary agencies,Reanda accounting firm and Tianyuan law firm,were also punished.One of the major characteristics of the financial fraud of the nine good group is the new field of fraud,because it is a network intermediary platform,not only involves many related parties,and financial processing is complex,provides a lot of possibilities for financial fraud.Therefore,based on the fraud case of backdoor listing of Nine Top group and the fraud risk factor theory,this paper analyzes the financial fraud case of backdoor listing of Nine Top group,so as to explore the enlightenment of this case on preventing financial fraud of backdoor listing of enterprises.As for the deep motivation of the financial fraud case of Nine Top group,the research conclusions of this paper are as follows.(1)motivation factor,from the perspective of shell companies,is mainly due to the fact that Guo Congjun,the actual controller of Nine Top group,and other high-level personnel are too greedy and excessively pursue interests.From the perspective of the backdoor side,saddle heavy shares in the case of continuous losses,in order to "protect the shell",saddle heavy shares on the "sell shell" road;(2)moral factors: the corporate culture of Nine Top group is distorted mainly due to the weak legal awareness and low moral literacy of the management level;(3)opportunity factor,whether from the perspective of the backdoor party or the backdoor party,the unreasonable ownership structure provides opportunities for the fraud case of Nine Top group.(4)exposure factor: due to systematic collusion and fraud,Nine Top group is hard to find the real situation.The possibility of fraud is very small due to the weak supervision of the accounting firm and the untimely internal information communication.(5)punishment factor: Nine Top group is mainly punished lightly due to imperfectcapital market laws and regulations,single form of punishment and low cost of corporate fraud.In view of the above analysis of the causes of fraud,this paper puts forward(1)Suggestions based on motivation factors: to curb their pursuit of illegal economic interests,not to be too aggressive in order to raise funds or even conduct fraud activities,long-term vision;(2)Suggestions based on the moral quality factor:enhance the legal awareness of the management and improve the moral quality of the management;(3)Suggestions based on fraud opportunity factors: optimize the company's shareholding structure,strengthen internal control system,strengthen information disclosure review,and improve the board governance mechanism;(4)Suggestions based on the possibility factors of fraud exposure: Deeply investigating the rationality of the overvaluation of the assets of the reorganizing party,strengthen the audit supervision of accounting firms,strengthen the audit supervision of internal audit institutions,and give full play to the supervision role of the media and the public;(5)Suggestions based on the nature and degree factors of punishment:Suggestions on financial fraud prevention of backdoor listed companies,such as increasing financial fraud punishment,improving investor claim mechanism,perfecting integrity archives and no-entry system.