Research On Financial Fraud Of Backdoor Listed Enterprises

With the acceleration of the integration and integration of world economy and trade and the implementation of China's "One Belt One Road" policy,China's capital market is booming.In the capital market,all walks of life promote each other,showing the status quo of a hundred schools of thought and flowers blooming,while high-quality enterprises have also access to investment and financing channels provided by the market.In order to have a place in the capital market and enter the fast lane of development in the era of rapid renewal and iteration,enterprises enter the capital market through various methods(such as IPO,backdoor listing,etc.),and seize the first chance in the capital market,resulting in more and more problems.Backdoor listing is a way for enterprises to enter the capital market and get financial support quickly,which makes them enter the fast lane of development.Compared with IPO,this process has less restrictions and low time cost,and is favored by many industries.However,on November 30,2013,the Securities Regulatory Commission promulgated the Notice on Strictly Implementing the Standards of Initial Public Offering Stock Listing in the Examination of Backdoor Listing,which regulates the conditions of backdoor listing.The conditions are stipulated as "the issuing conditions in the initial issuance method",which makes the supervision of backdoor listing converge with IPO.Faced with the pressure of financial indicators and the limitation of legal conditions,as well as the problems of information asymmetry and the defect of capital market system,some enterprises with impure motives will adopt illegal means to achieve the purpose of backdoor listing.The most typical means is financial fraud.Since 2017,the SFC has issued 109 administrative penalties,29 of which belong to the listed enterprises of financial fraud.Compared with the number of 13 enterprises involved in financial fraud in 2016,the number has doubled.This not only infringes the legitimate interests of market invcstors,but also undermines the normal development of the capital market,and has become an urgent problem to be solved.At present,the rapid development of technology makes the backdoor listing fraud appear more professional,novel and difficult to explore,and spread to the Internet field in the era of Internet and big data.This paper studies the backdoor listing fraud of Jiuhao Group in 2017 with a relatively new case-"backdoor" of Anzhong Stock Co.,Ltd.This case is greatly influenced by the market,new fraud means and dance.The wide range of disadvantages has stirred up the capital market and even been named by Liu Shiyu,who was the former chairman of the SFC.It has certain theoretical and practical significance to discuss the case.This paper will analyze the financial fraud of backdoor listing,hoping to explore the root of the problem from the internal causes of Jiuhao Group itself and the external causes of the market,and put forward relevant suggestions.This paper adopts the method of literature research and case analysis.Firstly,it studies the literature related to backdoor listing,financial fraud means,motivation and governance.Then it summarizes the research results of backdoor listing and financial fraud,and defines some key concepts(backdoor listing,financial fraud,etc.)and relevant theories of financial fraud(fraud motivation theory,principal-agent theory).This paper elaborates on the theoretical basis and basis for the analysis of the case.Secondly,by reviewing the process of Jiuhao Group's backdoor saddle-heavy shares,this paper analyses the financial fraud methods of Jiuhao Group as an Internet platform company in the field of intemet,such as increasing the concealment of fraud by using the half-true and half-false trading fictitious funds and the circulation of funds on the Internet platform,and making use of decentralized business transactions and fictitious income,in order to identify the Internet and big business.Fraud in the data age provides a model.Thirdly,this paper uses GONE theory to explain the internal causes of backdoor fraud from the perspective of individuals and enterprises(greed factor and need factor),and the external causes of backdoor fraud from the perspective of intermediaries and external regulatory environment(opportunity factor and exposure factor),so as to provide warning for enterprises and intermediaries and provide reference for relevant departments to supervise and manage backdoor listing in the future.Finally,on the basis of the analysis,it provides corresponding suggestions for the main participants(borrowers,intermediaries,regulatory authorities)in the process of backdoor listing,thus urging all parties to assume responsibility and fulfill their obligations,protect the interests of market investors,maintain the orderly operation of capital market,standardize the development process of backdoor listing,and promote the healthy development of the national economy.I hope to sum up some enlightenment from the cases of financial fraud and draw relevant lessons so as to prevent such fraud from happening again.Because this paper uses case analysis method to analyze financial fraud in backdoor listing,its universality needs to be further verified.In addition,due to the influence of practice,some data acquisition is limited.In the future research,I will continue to improve the depth and breadth of the research,with a view to more comprehensive and profound research on backdoor listing,put forward more targeted suggestions,and form and enrich valuable capital market academic research results.