A Case Study Of Financial Fraud Of Company Y Based On Risk Factor Theory

Since its establishment in 1990,my country’s securities market has developed for more than 30 years.With the gradual improvement of my country’s socialist market economic system,the securities market is constantly summarizing practical experience in the process of administrative law enforcement,and has formulated and improved laws and regulations related to securities transactions.But even so,there has always been a lack of financial fraud by listed companies in the securities market for their own selfish interests.Especially due to the development of modern science and technology such as the Internet and cloud computing in recent years,to a certain extent,it has provided new means and methods for listed companies to implement financial fraud,and also increased the complexity of fraud.In the past ten years,there have been many major financial fraud cases of listed companies in my country’s securities market,such as Zhangzidao,Kangmei Pharmaceutical,and Kangdexin.The fraudulent behavior of these untrustworthy enterprises will not only destroy the integrity foundation of the securities market,but even hinder the development of the national economy.Therefore,in-depth research on how to more effectively prevent and manage financial fraud in listed companies is of great significance for the stable development of the securities market and the entire society.At the beginning of 2021,the China Securities Regulatory Commission notified the investigation of the financial fraud case of Company Y.The fraud case involved a large amount of fraud,a long time span,and a number of violations of laws and regulations.First of all,this paper focuses on the financial fraud case of Company Y,and refers to the research results of many outstanding scholars at home and abroad on financial fraud,and finally selects the theory of fraud risk factors,information asymmetry theory and internal control theory as the theoretical support of the thesis.Secondly,this paper briefly introduces the company profile of Y company and sorts out the whole process of the fraud incident,then analyzes the specific means used by Y company for financial fraud,and points out that Y company mainly uses inflated monetary funds and other non-monetary assets,actual Controllers and related parties occupy funds and conceal important matters to achieve financial fraud.Thirdly,this paper uses the fraud risk factor theory to analyze the reasons for the financial fraud of Y company,mainly including the low moral quality of the relevant personnel,the company’s financing pressure and the motivation to avoid delisting,the unreasonable equity structure of the company,the loopholes in internal control,and fraud.Less likely to be exposed and less punishable for fraud,etc.Finally,aiming at the motivation of Y company’s financial fraud,this paper specifically puts forward the enlightenment of preventing the financial fraud of listed companies.It is hoped that through the case study of this paper,the major listed companies can be alerted,so as to reduce the occurrence of financial fraud incidents and maintain the capital market.Fair and orderly development to do our utmost.