Research On Financial Fraud Of Er Kang Pharmaceutical From The Perspective Of GONE Theory

Financial fraud refers to the illegal activities carried out by whitewashing financial data and disclosing false financial information to meet the needs of insurance,reporting,financing and personal interests.With the continuous opening and rapid growth of China's market economy,the capital market has also flourished.Due to the imperfect development of the capital market and the imperfect management system,the financial fraud cases of listed companies frequently occur,such as Jiuhao Group and Jiadian.Shares,Xintai Electric,Nanfang Shares,etc.Financial fraud will not only hinder the normal development of enterprises,damage the interests of investors,but even disrupt the order of the securities market and the entire market economy.It is extremely urgent to prevent and suppress the spread of bad winds and improve relevant laws and regulations and governance measures.The financial fraud of listed companies mainly comes from the internal environment and external supervision of the enterprise.The management is not good,the internal control is not perfect,the ownership structure is unreasonable,the internal audit failure is the internal environmental factors of the enterprise;the economic depression,The imprecision of external auditors,the lack of market supervision and loopholes in government regulation are external factors of corporate fraud.This article takes the financial fraud case of Erkang Pharmaceutical as the research object,and uses GONE theory to analyze from four aspects: greed,opportunity,need and exposure.Among them,greed and need are internal factors,from the personal level and the corporate level to the analysis of fraud,the personal level is mainly moral level and values,the company level is mainly the needs of the business management process;opportunities and exposure are external factors Analysis of fraud from the level of internal governance and the level of external supervision.Before analyzing the financial fraud behavior of enterprises,we first defined the related concepts of financial fraud,and selected GONE theory as the theoretical basis for analysis,which is more in line with the current situation of enterprises.The analysis of greed factors shows that the greedy motive of Erkan Pharmaceutical for financial fraud is to reduce cash and accumulate personal wealth;the analysis of opportunity factors shows that due to the unreasonable internal governance structure,unreasonable shareholding structure and internal audit failure Provided an opportunity for Er Kang Pharmaceutical's financial fraud;demand factor analysis found fraud to mitigate financial pressure and obtain stock option incentives;exposure factor analysis,external audit failure,external supervision is not in place and financial fraud The lack of punishment after being discovered and other reasons also provide opportunities for fraud.Finally,after analyzing the financial fraud case,the impact on the company's financial status,stock price and investors,and then put forward corresponding countermeasures.