Case Analysis Of JH Group's Backdoor Listing Financial Fraud

Last few years,the market competition is getting fiercer,and a variety of enterprises falling into financial fraud have also occurred.The JH Group's “flickering restructuring” case in 2017 involved a number of institutions.This is the revision of the “Significant Assets of Listed Companies” by the China Securities Regulatory Commission in 2016.After the Reorganization Management Measures,the first major case involving mergers and acquisitions,the JH Group's financial fraud has been widely concerned,and it must have certain containment and vigilance effects on the ongoing and intended financial fraud and blind listing.This paper analyzes and studies the case of JH Group's backdoor financial fraud.Firstly,in the past few years,the domestic and foreign literature on the financial fraud of the backdoor listing was studied,and the motivation,common means and impact of the financial fraud of the backdoor listing were discussed,which provided the theoretical basis and research for the subsequent case analysis of the financial fraud of the JH Group.direction.Secondly,it reviews the case of JH Group's backdoor financial fraud.On the one hand,it is the general situation of JH Group,including the basic situation,shareholding structure and operation;on the other hand,JH Group's backdoor listing process,from selecting shell resources to evaluating the assets of both parties.Then go to the backdoor listing plan design.Thirdly,the paper analyzes the JH Group's financial fraud cases,first analyzes the main means of JH Group's financial fraud,including fictitious income,fictitious bank deposits,undisclosed deposit pledges,etc.,and then uses GONE theory to analyze the motivation of JH Group's financial fraud.The reasons are manifold,such as the need for corporate financing,the company's own internal control flaws,the lack of external supervision,the lack of diligence of intermediaries,the low cost of fraud,etc.,and then analyze the impact of fraud,including on both sides of the backdoor The impact of intermediaries,securities markets and investors.Finally,according to the case analysis,the paper puts forward the prevention strategy for the financial fraud of the backdoor listing: the enterprise itself establishes the corporate culture of honesty andstrengthens the internal control of the enterprise;the government also needs to improve the related laws of backdoor listing and financial fraud,and raise the blow to financial fraud.Intensify,broaden the financing channels of enterprises,and call on external investors to participate in the supervision;intermediaries should also continuously improve the professional competence and professional ethics of employees,strengthen internal management;investors need to learn more financial knowledge to improve their own risks preventive awareness.