A Study On IPO Financial Fraud Behavior And Governance Of Agricultural Companies From The Perspective Of Risk Factors In The Case Of Longbao Gensing Company

In recent years,with a series of preferential policies and rapid development of securities market,agricultural enterprises have entered a golden period of development.The no.1 document of the central government in 2017 also clearly stated the need to support the rapid development of agricultural enterprises and support the listing and financing of eligible agriculture-related enterprises.However,IPO financial fraud of agricultural enterprises has become a stumbling block to the sound and stable development of China's agriculture and capital market.In August 2018,the securities and futures commission revealed to coldness ginseng antler co.,LTD."administrative penalty",said its prospectus exists on the description of the distribution pattern material omissions,concealing important guarantees,false disclosure of corporate governance and internal control,etc.,has become a typical agricultural listed companies is a fraud,avoid the happening of financial fraud become imperative.Therefore,it is of great research value to find out the deep-rooted causes of continuous fraud in agricultural IPO companies and how to govern them.Previous studies on fraud behavior of listed companies are not few,but there are few studies have combined the risk factor theoretical basis with the fraud behavior and governance measures of agricultural IPO enterprises.Based on this,this paper,on the basis of previous studies on fraud by scholars,starts from the status quo of IPO of agricultural listed enterprises,summarizes the conventional means of fraud in the process of IPO of agricultural enterprises,and based on the theory of fraud risk factors,conducts an in-depth analysis of the motivation and mechanism of fraud in the IPO of agricultural enterprises.Lonbao ginseng antler,an agricultural enterprise newly punished for IPO fraud by CSRC,is selected as the case study object to analyze its fraud process,means,fraud motivation and particularity of IPO fraud motivation.Finally,based on the five factors of fraud risk,this paper proposes the governance strategies of IPO fraud of agricultural enterprises from the internal and external perspectives of agricultural listed companies.This paper argues that from the perspective of agricultural listed companies,we should improve their corporate governance structure,and strictly control the risk of cash transactions.Externally,we should consider reducing government financial intervention,guiding media supervision,expanding financing channels of listed agricultural companies,requiring IPO intermediaries to pay attention to special agricultural matters,strengthening law enforcement and punishment of regulatory authorities,and improving the civil compensation system.Only then achieves these aspects,can effectively govern the agriculture to appear on the market the company's corrupt behavior.