Research On The Causes And Prevention Of Financial Fraud Of Listed Companies

Capital market is one of the places where resources are allocated optimally and direct financing cost is the lowest.Its normal and orderly operation is inseparable from the guarantee of information disclosure quality in capital market,among which the most important and key is the authenticity of financial information.China's capital market is established late and has a short history of development.The market environment,laws and regulations and regulatory mechanism need to be improved and strengthened.In recent years,the capital market of our country has frequently erupted malignant financial fraud,which not only shakes the confidence of investors and infringes the interests of investors,but also destroys the healthy development of the socialist market economy,especially the capital market,and also leads to the collapse of the reputation of listed companies.In order to prevent the occurrence of financial fraud of listed companies,the CSRC has been increasing the supervision and examination of listed companies,strictly investigating and punishing the financial fraud of listed companies,and has always been committed to regulating and improving the operation of listed companies,and improving the governance level of listed companies.But at the same time,the financial fraud of listed companies is also constantly upgrading,and the fraud means are more and more hidden and diversified.Therefore,the research on financial fraud of Listed Companies in China has important theoretical value and practical significance.Based on the theoretical research and practical exploration results of financial fraud of domestic and foreign enterprises,guided by the theory of financial fraud motivation,this paper selects listed companies of traditional Chinese medicine manufacturing industry that are easy to be ignored as the research object,and considers that Kangmei pharmaceutical industry is one of the representative enterprises of traditional Chinese medicine industry in China,and its financial fraud involves a large amount,which belongs to the investigation and punishment of CSRC And it is determined as a case study.This paper comprehensively and deeply analyzes the main ways of financial fraud in Kangmei pharmaceutical industry,such as increasing operating revenue,increasing monetary capital,increasing fixed assets,concealing the occupation of non operating funds of related parties,etc.,and reveals the causes of financial fraud in Kangmei pharmaceutical industry from the perspective of greed,opportunity,demand and disclosure,combining with financial indicators and nonfinancial information,and then pertinently from four factors From the perspective of sub drivers,the corresponding financial fraud prevention measures are put forward.The main conclusions are as follows:(1)The financial frauds of Kangmei pharmaceutical industry are mainly realized by means of fictitious business vouchers,fuzzy accounting to confirm measurement conditions,and using the funds occupied by related parties to control the stock price by means of fictitious business vouchers,fictitious monetary funds,fictitious fixed assets and concealing the occupation of non operating funds of related parties.The ways and means of financial fraud in Kangmei pharmaceutical industry are not new,but the amount involved is huge;(2)The fraud behavior of Kangmei pharmaceutical industry follows and conforms to the four factor theory of gone,which is caused by the following four factors: the greedy factors of the financial fraud caused by the pursuit of the maximization of the management's own interests and the weak corporate social responsibility;the two main internal causes of the company's lack of equity structure and weak internal control,and the absence of external audit supervision,which are the main external causes of the financial fraud Behavior creates opportunities;avoiding delisting and expanding the strong demand of financing forms the demand factor of financial fraud;the lag of exposure time and low violation cost make the exposure risk of financial fraud very small,which makes the financial fraud of Kangmei pharmaceutical possible and inevitable;(3)The prevention of financial fraud in Kangmei pharmaceutical industry needs to focus on four factors at the same time: strengthening the moral and legal awareness of managers and improving the professional ethics of accountants,so as to fundamentally curb the greed of the company and its employees;improving the internal control system,optimizing the internal governance structure,strengthening the external audit function,and combining internal with external In order to improve the mechanism of supervision and punishment,we should strictly implement delisting system and reasonable development strategy to eliminate the company's bad demand,give full play to the effectiveness of external supervision and strengthen the punishment of fraud.