Risk Analysis And Prevention Of The Double High Phenomenon Of Deposit And Loan In Kangdexin Companies

Our country’s current market supervision and management system is still in an imperfect state.Although with the rapid economic development,my country’s capital market has also improved significantly,and a large number of companies have chosen to go public to open up emerging markets to increase market prices,but opportunities and risks are coexisting.In recent years,the double high of deposits and loans of listed companies has increased.Because of the double highs of deposits and loans,corporate financial crises have also emerged one after another,which not only damages the self-interest of small and medium shareholders of enterprises,but also disrupts normal stocks due to fluctuations in stock prices.The operation of the market jeopardizes the reputation of the industry.This caused the CSRC and the Ministry of Finance to pay attention.High deposits and loans mean that the monetary capital and interest-bearing liabilities in the financial statements of listed companies are at a high level at the same time.On the surface,monetary funds are high-quality assets of listed companies,which can enable listed companies to maintain better liquidity and payment capabilities.However,many listed companies have relatively high interest-bearing liabilities while having high amounts of monetary funds,and paying high interest on these liabilities is not in line with business logic.This paper analyzes the financial fraud cases discovered by the listed company Kangdexin due to the double-high phenomenon of deposits and loans,and discusses it based on the liquidity preference theory,the GONE theory and other related documents.First,it briefly explains the Kangdexin company an overview,and the company’s financial fraud that have been reviewed due to the double high of deposits and loans,and explores the concept and financial characteristics of the "double highs of deposits and loans";secondly,discusses the reasons for the phenomenon and the financial risks behind it,and finally put forward specific prevention suggestions for this phenomenon.