Research On The Causes Of Financial Fraud Based On GONE Theory

With the rapid development of Chinese economy,the capital market has made great progress,and has been constantly moving towards maturity,which will further help China to improve the modern market system,broaden the channels of investment and financing for enterprises and residents,optimize the allocation of resources,and speed up the economic transformation and upgrading.But at the same time,the problem of financial fraud is still growing,which leads to the wrong transmission of market information,intensifies the information asymmetry,destroys the fair market environment,and also affects the orderly and rapid development of the capital market.The purpose of this paper is to analyze the main causes of fraud through the research of financial fraud in Kangmei Pharmaceutical Co.,Ltd,and to provide theoretical basis and policy advice for preventing financial fraud,and to provide important theoretical and practical significance for the benign development of capital market.Based on the complementary GONE theory,this paper studies the problem of financial fraud in enterprises under the new theoretical framework,mainly using case analysis and inductive analysis,through collecting and collating data,combining the theoretical research results with practical cases to carry out research.On the basis of literature review and definition of related concepts,according to the idea of "current situation description-theory analysis-policy suggestion ",the research contents mainly consist of five parts:the first part mainly introduces the current situation of financial fraud,summarizes the relevant previous studies,and briefly describes the research contents and methods.The second part summarizes the theoretical research related to financial fraud,reflects the different stages of fraud research changes,and specifically explains the content of the new theoretical framework.The third part introduces the case object,Kangmei Pharmaceutical Co.,Ltd,describes its company management,fraud process,fraud characteristics and impact,and compares with other fraud enterprises,so that the whole case background is clearer.Around the revised GONE theory,the fourth part analyzes the financial fraud motivation of Kangmei Pharmaceutical Co.,Ltd in detail from five aspects:greed,opportunity,demand,exposure and ethics.The fifth part summarizes the conclusion of the study,combined with the feasibility,and puts forward the corresponding preventive measures for each factor..The results show that:first of all,the financial fraud of Kangmei Pharmaceutical Co.,Ltd is a deliberate fraud by management,which has the characteristics of huge amount,organized and premeditated process,long-term system,and extensive and bad impact of the consequences.Secondly,the main internal driving force of Kangmei Pharmaceutical Co.,Ltd fraud is the low moral level of management,greedy heart,external driving is the help of intermediary organizations.At the same time,there are internal factors such as unreasonable governance structure,ineffective operation of internal control system and incomplete implementation of supervision,and low external factors such as punishment after the event,which together cause the occurrence of financial fraud in Kangmei pharmaceutical industry.Finally,the prevention of financial fraud in enterprises,in addition to internal governance and external supervision,should also pay attention to the construction and promotion of ethics.