A Case Study On Financial Fraud Of Whirlpool(China)Co.,Ltd.

A company’s financial statements can reflect its financial status and operating results.The annual financial statements of listed companies are particularly important.Checking the financial statements of listed companies is an important way for the government,the public,shareholders and other stakeholders to understand the information of listed companies.way.However,the occurrence of financial fraud incidents of listed companies is also a problem that the market economy has to face.This will not only harm the vital interests of all stakeholders,but will also send wrong information to the capital market and disrupt the relevant market order.Therefore,it is very meaningful to research and analyze the causes of financial fraud in listed companies and propose corresponding preventive measures.Whirlpool Group is an internationally renowned home appliance company,while Whirlpool(China)is a company formed through mergers and acquisitions.Its financial fraud is very representative.On the one hand,it chooses the company’s mergers and acquisitions and its performance commitments after mergers and acquisitions.,All companies should be more cautious;on the other hand,for the home appliance industry,especially the white goods industry,it also has a good reference value,such as the coordinated development of brands,strategy formulation,internal control environmental governance,etc.This article selects a representative Whirlpool(China)company in the white goods industry to analyze and study its 2015 and 2016 financial report fraud cases.This article is divided into four parts.The first part is the introduction,which mainly introduces the research background and significance of the article,briefly summarizes the research methods involved in the article,roughly explains the research content of this article,and sorts out the financial fraud theories used in the writing process and references cited The results of papers by Chinese and foreign scholars.The second part is the case introduction of Whirlpool(China)financial fraud,introducing the basic situation of Whirlpool(China)company,including its development history,main business,etc.,reviewing the entire incident of Whirlpool(China)financial fraud and introducing in detail After analyzing its financial fraud methods,the final analysis of the economic consequences of Whirlpool(China)financial fraud.The third part is the analysis of the causes of Whirlpool(China)financial fraud.This chapter is based on the financial fraud triangle theory,starting from the three aspects of pressure,opportunity,and excuses,combined with internal control theory,to conduct financial fraud on Whirlpool(China)In-depth analysis.The fourth part is about some targeted preventive measures of Whirlpool(China)financial fraud.This part is still based on the financial fraud triangle theory,discussing from the three aspects of pressure,opportunity,and excuses,combined with the financial fraud motives pointed out in the previous article Suggest countermeasures accordingly.Through analysis,this article summarizes the three reasons for Whirlpool(China)financial fraud.First of all,in terms of pressure,the performance commitment pressure made by Whirlpool when it acquired Hefei Sanyo is an important factor,coupled with its own product brand confusion,weak profitability,and The pressure of external market competition is huge,resulting in a smaller market,which is a stress factor.Secondly,in terms of opportunities,Whirlpool(China)has insufficient corporate governance capabilities,and its employees lack the proper professional ethics,the company’s senior management positions are changed frequently,and financial fraud penalties are insufficient.These factors provide opportunities for financial fraud to a certain extent.Finally,in terms of excuses,Whirlpool(China)’s explanation is similar to that of other companies.It is nothing more than maintaining the company’s perfect image all the time,in order to complete the performance promises made to shareholders during the original merger and to maintain stock prices.Based on the causes of Whirlpool(China)financial fraud,this article proposes preventive measures from three aspects: pressure,opportunity and excuses.The first is to alleviate the pressure of financial fraud.The key is to improve the profitability of the company.By continuously optimizing brand resources,enhancing market competitiveness,and continuously expanding the market scale of products,the purpose of increasing revenue and alleviating pressure is achieved.The second is to reduce opportunities for financial fraud.We must continue to improve the corporate governance system.While improving the professional ethics of employees,we must also strive to stabilize corporate executive positions.On the other hand,increasing the costs related to financial fraud is also an important external measure.The China Securities Regulatory Commission should strictly implement the new version of the Securities Law and strengthen the penalties for financial fraud.The third is to stop the excuses of financial fraud,strengthen the construction of corporate culture,and implement the corporate values of integrity and integrity to the end.