Research On Financial Fraud Of Overseas Subsidiaries Of Domestic Listed Companies

Since the 21st century,with the rapid development and continuous improvement of China's capital market,More and more companies hope to obtain financing and better development opportunities through the lower cost of listing.for all parties.Many companies will inevitably revise financial reports in the process of financing and raise financial data so that the company can be optimistic by major investors and small and medium-sized investors.Although the financial fraud of domestic listed companies is a serious distortion of corporate financial information,in view of China's capital market,financial fraud of listed companies has become a widespread phenomenon in financial markets.With the continuous deepening of China's open policy,more and more enterprises have gone abroad,or have used overseas resources,or used lower costs abroad,to set up subsidiaries at home and abroad.This is an inevitable picture of global capital integration and economic globalization.However,the phenomenon of financial fraud has become increasingly prominent,and there is a tendency to spread overseas.Financial fraud seriously distorts the value of listed companies,disrupts the normal capital market order,and seriously damages the interests of investors,greatly damaging the investment enthusiasm of investors,and has a serious impact on the healthy development of China's securities market.The phenomenon of accounting fraud in listed companies has been repeatedly banned,which has seriously affected normal social activities,undermined the normal market transaction order,caused huge losses to investors,and also caused serious harm to the development of the national economy.Taking Erkang Pharmaceutical Co.,Ltd.as an example,this paper uses the risk factor theory to analyze the economic indicators of its financial statements,and comprehensively analyzes the use of the domestic listed company Er Kang Pharmaceutical in overseas financial fraud.Fraud methods,explore their motivations,and summarize the characteristics of overseas financial fraud from this case.Finally,from the perspectives of internal,national and social aspects of listed companies,the related countermeasures and suggestions for financial fraud of listed companies are proposed.I hope to provide reference for other enterprises in China and further safeguard the healthy development of China's capital market.