*ST Boyuan Financial Fraud Motivation Research

With the continuous development of China’s economy,China’s capital market is also expanding,the number of listed companies is increasing,and more and more enterprises use the stock market for financing and profit.Listed companies play a crucial role in improving the capital utilization rate in the capital market and optimizing the allocation of economic resources in the whole society.The financial frauds of listed companies undermine the fair and equitable market order,not only harm the economic interests of the majority of investors,but also have a very bad impact on the healthy development of the securities market.Therefore,how to detect and prevent financial frauds of listed companies in time has become a practical problem to be solved urgently.The study on the motivation of financial fraud of listed companies can help listed companies themselves,investors and relevant regulatory agencies to find fraud at the source,so as to formulate more effective countermeasures.Firstly,this paper analyzes the status quo of financial fraud of listed companies in China,including the number of financial fraud trends,industry distribution,types of fraud and the punishment after fraud in recent six years.In terms of the number trend,there have been enterprises punished by relevant departments due to financial fraud every year in the past six years in China,and the number of them fluctuates greatly.In terms of the distribution of fraudulent industries,the sample enterprises are involved in a total of 11 industries.The probability of fraudulent behaviors is higher in wholesale and retail industry,scientific research and technical service industry,agriculture,forestry,animal husbandry and fishery industry,and leasing and business service industry.In terms of types of financial fraud,more sample enterprises choose non-financial data fraud with high degree of concealment,and nearly half of them choose to adjust the income statement for fraud.In the case that the fraud is punished,the average lag time of the sample enterprises punished for financial fraud is 4.19 years,among which the lag time is as long as 13 years,which makes some listed enterprises go into the path of financial fraud for short-term huge economic benefits.Secondly,this paper adopts the case analysis method and takes*ST boyuan as the specific case analysis object to sort out the financial fraud background and financial fraud means of the case enterprise.Based on the theory of fraud risk factors,this paper combines individual risk factors with general risk factors to analyze the financial fraud motivation of*ST boyuan.From the perspective of individual fraud risk factors,it is precisely because of the lack of integrity of the actual controller of*ST boyuan,the lack of directors’ moral quality,the company’s own "shell protection" pressure and financial pressure that the company USES fraud to cover up the fact that the share reform fund is not in.place.From the perspective of general fraud risk factors,the low supervision quality of the independent directors,the board of supervisors and accounting firms,the absence of the company’s shareholders’ meeting,the imperfect corporate governance institutions and the low punishment after the fraud was found provide a soil for the breeding of financial fraud of*ST boyuan.Finally,this paper puts forward corresponding policy Suggestions from two aspects of general risk factors and individual risk factors,so as to provide some reference for preventing financial fraud of listed companies.