Analysis Of Yabaite's Cross-border Financial Fraud Case Based On GONE Theory

The rapid development of China's economy has brought about vigorous development of the capital market,and the number of listed companies has risen sharply.At present,more and more companies are vigorously expanding overseas markets,enriching financing channels,and the pace of cross-border investment has gradually accelerated.However,the frequent occurrence of financial frauds by listed companies has caused the quality of listed companies uneven,and the order of the capital market has also been severely disrupted.It has also damaged the good social atmosphere.In recent years,although the China Securities Regulatory Commission has gradually perfected the securities market supervision system and strengthened the supervision of listed companies and the administrative penalties for fraud,financial fraud incidents continue to be forbidden and show no signs of mitigation,even showing a shift to overseas the trend of.In December 2017,the Jiangsu Yabaite Technology Co.,Ltd.'s financial fraud case investigated by the China Securities Regulatory Commission was the first case of cross-border financial fraud in China.The case was of a terrible nature,forged letters from Pakistani dignitaries,and alarmed the Ministry of Foreign Affairs,which had a negative impact on China's international image.The Shenzhen Stock Exchange launched a mandatory delisting mechanism for Yabaite on July 5,2018.Although there are relatively few cases of cross-border financial fraud in China's listed companies at this stage,as the internationalization process accelerates,more companies will turn to cross-border business,which also greatly increases the possibility of cross-border financial fraud.The adverse effects are incalculable.Based on this,this article takes Yabaite's cross-border financial fraud case as the main body,exposes the means of cross-border business financial fraud,uses GONE theory to deeply study its causes of fraud,and finally proposes to suppress cross-border finance from the aspects of corporate governance and external supervision.The relevant suggestions on fraud are hoped to provide a reference for solving cross-border financial fraud,and strive to control financial fraud to protect the interests of investors and maintain the stable development of capital markets.This article is divided into five chapters,the main contents are as follows: The first chapter is an introduction.It explained the research background and significance of the article,expounded the research ideas,methods and framework,and systematically reviewed the research of experts and scholars on GONE theory,the causes and means of cross-border financial fraud.The second chapter is a theoretical overview of cross-border financial fraud.This chapter introduces the concept and characteristics of cross-border financial fraud,explains the causes and means of cross-border financial fraud,and also introduces the specific content of GONE theory to provide a theoretical basis for the full text.The third chapter is an introduction to the entire Yabaite cross-border financial fraud incident,including the company profile and a review of the cross-border financial fraud incident.Based on this,this article analyzes the fraud measures used by Yabaite.Finally,it discusses the bad consequences of its financial fraud,which leads the company to face the risk of delisting,subsequent operations have been seriously affected,and intermediaries have been jointly and seriously punished.The fourth chapter is the analysis of Yabaite cross-border financial fraud based on GONE theory.Based on the GONE theory,it analyzes the causes of Yabaite's financial fraud from four aspects: greed,opportunity,need and exposure.The fifth chapter is the conclusion and enlightenment of the research on the case of cross-border financial fraud in Yabaite.In response to Yabaite's cross-border financial fraud case,this article finds in the analysis that falsely increasing income and profits by faking economic business is the main means of cross-border financial fraud,and the high profit demand behind the gambling agreement is the driving force for cross-border financial fraud Inadequate corporate governance structure has provided internal opportunities for cross-border financial fraud,insufficient cross-border supervision and auditing have provided external opportunities for cross-border financial fraud,and inadequate punishment has promoted cross-border financial fraud.Based on the above analysis conclusions,this article proposes: strengthen the company's legal and moral construction and reduce the greed of senior executives;give full play to the supervisory functions of independent directors,the board of supervisors and internal audit institutions,and reduce internal opportunities for cross-border financial fraud;strengthen the supervision of cross-border business To reduce external opportunities for cross-border financial fraud;broaden funding channels,establish a reasonable market evaluation system,and guide management'sreasonable needs;increase external supervision and punishment for violations of law,and curb the emergence of cross-border financial fraud.