Analysis And Enlightenment Of IPO Financial Fraud Case Of Xintai Electric Company

With the development of China’s economy and the improvement of the market economy system,the securities market has been developing rapidly,and the number and financing scale of listed companies in China have increased significantly.However,with the rapid development of the securities market,the listed companies’ financial fraud incidents continue to be banned,and the IPO financial fraud is becoming more and more serious.Lantian shares,Green land,Shengjing tianhe,Wanfu health,Hailunxun,Xintai electric and so on,these companies,driven by huge profits,use some means to falsify the relevant data of financial statements to make themselves meet the requirements of the listing of various conditions.This kind of fraud has disturbed the development order of the capital market,hindered the healthy development of the market economy,reduced the confidence of investors,affected the trust of the society to the relevant management departments,and the company itself will suffer reputation damage,punishment,or face bankruptcy risk.Xintai electric is the first listed company in China’s securities market to be delisted due to financial fraud in IPO listing,and also the first stock to be delisted in gem.This paper reviews the listing and financial fraud disclosure process of Xintai electric,analyzes its IPO financial fraud mode and reasons,analyzes the impact of fraud punishment on stakeholders,summarizes the prevention and control measures of IPO financial fraud.On the one hand,it can enrich China’s theoretical research on identifying financial fraud and financial accounting governance.On the other hand,it hopes to make more people pay attention to and reflect on this problem.Relevant departments can introduce more perfect and strict laws and regulations to regulate financial fraud behavior,and create a good investment environment for the majority of investors.It plays a positive role in improving the information disclosure and management of listed companies and promoting the governance of corporate financial fraud.Through the study of the IPO financial fraud case of Xintai electric,this paper draws the following enlightenment from the prevention and control of IPO financial fraud :(1)To further improve the stock issuing system.(2)An effective corporate governance structure and internal control system should be established.(3)To further strengthen the supervision of intermediary institutions.(4)To further enhance the integrity and professional ethics of relevant practitioners.(5)The protection system for small and medium-sized investors should be further improved.(6)To further increasethe penalties for financial fraud related to the person responsible.This paper is divided into five parts,the specific arrangement of each part is as follows: the first part of the introduction,including the research background and significance of this paper,literature review and the main research ideas and methods of this paper.The second part is the theoretical overview of IPO financial fraud,which introduces in detail the concept,characteristics,purpose and main means of IPO financial fraud,as well as its related financial fraud theory.This chapter is the theoretical basis of the full text.The third part of the Xintai electric IPO financial fraud case review,details the history of Xintai electric,ownership structure and other basic information,Xintai electric listing and fraud was exposed process,as well as the financial fraud was exposed after the punishment of all parties.The fourth part is the case analysis of Xintai electric IPO financial fraud,this part of Xintai electric IPO financial fraud reasons,means,impact,characteristics of a detailed analysis.The fifth part is the conclusion and enlightenment of the case study.By synthesizing the above analysis,the paper draws the conclusion and puts forward the corresponding Suggestions.