Case Analysis Of Zhangzidao Group’s Financial Fraud From The Perspective Of Corporate Governance

With the rapid economic growth,the development of China’s capital market has become more and more prosperous.At the same time,more and more big small and medium enterprises have also exposed various problems after listing on the stock market,but causes one of social all walks of life attention rate high question.These negative financial news of listed companies in China have caused serious damage to the interests of many shareholders,and the defects of corporate governance structure of listed companies have been exposed.Therefore,the focus of attention gradually falls on how to improve the company’s operating system from the perspective of corporate governance.Based on the related problems exposed by the financial fraud in Zhangzi Island,this paper attempts to study the causes of the financial fraud from two angles,one is the internal governance of the company,the other is the external governance of the company,this paper probes into the financial cheating factors behind the repeated "scallop run away" in Zhangzi Island,aiming at improving the corporate governance level of listed enterprises,thereby improving the quality of information disclosure of listed companies,which can not only enhance the benefits of agricultural economy,it can also further improve the sustainable development ability and market competitiveness of China’s listed companies,which has certain practical and theoretical significance.At first,this paper expounds the background of Zhangzidao incident and sorts out the causes and circumstances of the incident.Then from the perspective of corporate governance to study the causes of the problem.The results show that the imperfect internal and external governance of the company is a hotbed for the occurrence of financial fraud in Zhangzi Island,from the existence of potential shareholders,the board of directors and the Board of Supervisors do not play a full role,the level of internal control is too low and other internal governance issues,to the capital market system is relatively weak,the supervision department system and the statute are not perfect,the intermediary organization does not act and so on the external mechanism governance question.In this paper,the shortcomings of Zhangzidao’s corporate governance,this paper puts forward some improving measures from the angles of fully understanding the relationship between shareholders,giving full play to the role of the board of supervisors,perfecting the system of the board of directors,perfecting the incentive mechanism of the management,and improving the professional competence of the auditors of the law firms,hope to be able to improve the level of internal governance structure and improve the external governance structure of enterprises.