The Study Of Financial Fraud Motivation And Prevention Of ST Companies

ST is a special treatment for the stock transactions of listed companies with abnormal financial or other conditions.ST company is under great pressure of delisting.In order to avoid the false impression of sufficient funds taken by many delisting companies,financial fraud thus occurs.According to the statistics of the proportion of financial fraud carried out by ST companies in Shanghai and shenzhen between 2012 and 2018,the most serious financial fraud was found in 2016,with 23 out of 61 ST companies involved in financial fraud,accounting for 37.70%.Therefore,this paper raises the following questions:(1)what are the causes of financial fraud in ST company?(2)what are the financial fraud means adopted?(3)how to prevent and govern financial fraud of ST company?Through extensive reading of literatures,it can be seen that the existing research on financial fraud mainly focuses on four aspects.Second,the means of financial fraud research;Third,the identification research of financial fraud;Fourth,the prevention and governance of financial fraud research,and the research object for all listed companies.This study,the study will be focused on by Revelations of financial fraud of ST companies,from dimension of corporate fraud motivation characteristics analyzing the characteristics of the fraud,it is concluded that the ST fraud company's total assets scale is small,management ability is poor,the governance structure is not ideal,the major defects of internal control and fraud punishment cycle long and weak conclusion,such as carbon olefine and ST company as a typical case,according to the theory of fraud risk factors from the moral quality,fraud motivation,opportunity for fraud,found the possibility and the nature of the punishment and the five factor analysis of the characteristics of financial fraud motivation,found that the low level of morality is the precondition of ST company financial fraud for fraud,In order to avoid delisting,continue to operate over that financing predicament of motivation is the promoter of the financial fraud,ownership structure concentrated,the board can be evaded,supervision and failure of the independent directors,audit committee,in name only opportunities,such as well as the major defects of internal control,to provide favorable conditions for financial fraud,concealed fraud means and the absence of regulation is to reduce the likelihood of financial fraud found,too weak penalties,do bad demonstration to the subsequent financial fraud.Finally,this paper proposes corresponding countermeasures and Suggestions from multiple aspects for the five fraud factors:(1)improve the level of professional ethics,mainly including developing and strengthening the professional ethics education,establishing the professional ethics evaluation system and improving the professional ethics inspection and reward and punishment mechanism;(2)eliminate the motivation of fraud,mainly rely on the company to take the initiative in transformation and upgrading and the state to help broaden financing channels;(3)reduce the opportunities for fraud,mainly by giving full play to the functions of the general meeting of shareholders,improving the board of directors system,strengthening the internal control construction,improving the selection system of supervisors and setting up the supervision departments of special accounting firms;(4)to increase the possibility of exposure,including making full use of media supervision,strengthening investor education and strengthening research on audit means and methods;(5)to increase the cost of fraud,mainly including strengthening the delisting mechanism due to illegal information disclosure,incorporating the audit opinions of internal control into the delisting index and increasing the intensity of supervision and punishment.