Research On Financial Fraud And Governance Of Y Listed Company

Since the 21 st century,China's economy has developed vigorously and has maintained a highspeed growth rate,a large part of which has benefited from the development of China's capital market.However,in recent years,the financial fraud and other untrustworthy behaviors of listed companies in China have emerged one after another.The counterfeiting methods are more diverse and concealed,seriously affecting the normal order of the capital market and causing major economic losses to many investors.According to the summary of the administrative punishment of the CSRC issued in 2016-2018,the number of cases handled was 183,224 and 310 respectively,and penalties were 4.283 billion yuan,7.566 billion yuan and 10.641 billion yuan respectively under the supervision of the CSRC with high-pressure zero tolerance.The growth rate has decreased,but the impact is still very serious.Therefore,considering the frequent occurrence of fraud in listed companies,this paper is of far-reaching significance in studying the financial fraud of listed companies.The main idea of this paper is to review the research on the cause,method,identification and governance of financial fraud by domestic and foreign scholars based on the literature research method,which lays the research foundation of this paper.Then,combined with the major financial fraud case of Y Company,the case analysis is mainly carried out.From the three aspects including in case introduction,in-depth analysis and prevention measures,the prevention and management suggestions are proposed from the perspectives of investors,regulators,companies themselves and intermediaries.The case firstly introduces the history of Y company and its internal and external status,and elaborates the reasons for the 2015-2016 financial fraud case and the punishment results by the CSRC,and analyzes the financial fraud case of Y Company for the accounting industry as well as the impact of other relevant stakeholders,which highlights the positive significance of studying the financial fraud governance measures of listed companies.Then,the company's financial fraud case is deeply analyzed,mainly from three perspectives.The first part is the in-table analysis.It analyzes the case from the four dimensions of income and profit,cash flow,asset quality and financial indicators,based on the financial report and its annotations and other public information,combined with professional knowledge to identify a variety of signs of fraud.Then Y company's off-balance analysis framework is to select the GONE model,from the greedy factor,opportunity factor,need factor and exposure factor.The angle analyzes the deep motivation of Y company's financial fraud.The third one is to sort out the financial fraud of Y company,mainly adopting a series of means such as fictional domestic and foreign business income and forging cash flow through related parties.Finally,based on the above analysis,the countermeasures against prevention are summarized from the perspectives of investors,regulators,enterprises themselves and intermediaries.Firstly,by means of on-and off-balance-sheet analysis,the ability of investors to identify fraud is enhanced.The focus is on cash flow analysis,asset quality and utilization ratio analysis.Secondly,external regulators(such as the CSRC)strengthen multilateral regulatory cooperation.Improve the mandatory delisting and small and medium-sized shareholders' claims mechanism,carefully review the “gambling agreement” in asset restructuring,and improve supervision;thirdly,improve the ownership structure and improve corporate governance from the company's own perspective;last but not the least,to strengthen independence and quality control management of intermediaries(such as accountants,brokerages,law firms,etc.),and to regulate cross-border audit rules as soon as possible.This is the starting point and destination of this study.