Research On The Causes,Means,and Influences Of Financial Fraud In Listed Companies

With the rapid development of China' s economy and the growing prosperity of financial and other industries,the capital market has become an effective way for listed companies to become bigger,stronger,and better.More and more companies want to use the stock market for financing and profit.Raising the scale of self-owned funds and optimizing the capital structure also increase the value of companies and shareholders.However,in recent years,the financial frauds of listed companies have emerged in an endless stream.Whether it is the number of frauds,the length of fraud,or the amount of fraud,the entire capital market has been shocked.The false financial information masked the company's true business performance,seriously distorting the true value of the company's stock.The healthy and stable development of the market has affected the country's macro-control policies and has eroded social morality.The financial fraud of listed companies may bring great benefits to them in the short term,but the false prosperity brought about by financial fraud is not conducive to the sustainable development of the company.Although many listed companies have introduced many internal control policies to prevent financial fraud,the so-called "policy system" has not played its due role in the frequent occurrence of fraud.Therefore,in-depth analysis of China's listed companies in recent years,the basic features,types and means of financial fraud,systematically elaborated the financial consequences of listed companies' financial fraud,combined with the specific case of listed companies,from the internal management,external supervision and other aspects of comprehensive analysis of listing The essence of the company's financial fraud is to deeply analyze the impact of financial fraud on stakeholders,employees,creditors,and the government.The research results can help investors identify the characteristics of financial fraud to a certain degree,and it is important for preventing and managing financial fraud.Theoretical and practical significance.This paper adopts the case analysis method and uses the Yunnan green land as the specific case analysis object.Based on the review of the background of the case and the content and process of financial fraud,this paper analyzes the reasons,means and impacts of the financial fraud of the green land companies and accordingly proposes prevention and control accordingly.Financial fraud and protection of investors' interests.Firstly,the dissertation combines the current research results of financial fraud in the academia,makes a literature review of the causes,means,consequences,and impact of financial fraud.At the same time,it systematically describes information asymmetry theory,earnings management theory,triangle theory,and GONE theory and risk.Factor theory provides a theoretical foundation for future financial fraud case analysis.Secondly,based on the previous theoretical analysis,the dissertation studies the causes,methods,types and influence of listed companies' financial fraud.This article first compiled the information on the financial fraud of the 58 listed companies disclosed by the China Securities Regulatory Commission from 2013 to 2017,analyzed the financial fraud measures,types,and economic consequences,combined with the process and results of the financial fraud of the case companies in the green earth,from the internal management and external Overseeing two dimensions,in-depth analysis of the causes,means and impact of financial fraud in the green land.The analysis found that the most commonly used fraud means for corporate listed companies is income fraud,asset fraud,and related party transactions fraud.In terms of fraud types,listed companies are more inclined to falsely disclose relevant accounting information and conceal significant accounting issues in the notes to the financial statements.,and there are generally many types of combinations of fraud.The case study found that the internal causes of"green land" financial fraud were mainly due to insufficient funds of the company and rush to market to circulate the money.In addition,the company's internal control system was not effectively operated,and the management's power was too concentrated,resulting in the company's dictatorship and arbitrary forgery.The phenomena of accounting vouchers and accounting books were tampered with;the external causes were mainly caused by the lack of supervisory capacity of securities regulatory authorities and the failure of accounting firms to act.The dereliction of duties of the supervisory and intermediary agencies provided fraudulent opportunities for the company's management.Faced with the temptation of huge profits,senior executives arbitrarily adjusted their financial reports despite moral hazard,and boldly implemented illegal actions through fictitious transactions.The financial fraud measures of Yunnan Greenland Group mainly include four aspects:inflated fixed assets,use of related party transactions to increase revenues,evasion of financial supervision,multiple replacement of auditors within three years,and frequent changes in net profits.The financial fraud of the case company "green earth"has had a bad influence in the capital market.This paper mainly studies the influence of its fraudulence on the stakeholders,and analyzes them from the perspectives of shareholders' interests,employees' interests,creditors' interests,and government departments.The influence of "green earth" financial fraud on stakeholders.The case analysis shows that "green land" financial fraud not only infringes on the interests of the country,but also seriously damages the interests of the company's small and medium shareholders and creditors.As a result,employees eventually become victims of corporate fraud,and it is difficult for creditors to recover all their funds.At the same time,it also seriously hindered the healthy development of the securities market.