A Study On Financial Fraud In Huanrui Century's Backdoor Listing

As one of the ways to optimize resource allocation in the capital market,asset restructuring among enterprises has an indispensable position in the survival and development of enterprises.Backdoor listing is an important component of mergers and acquisitions and restructuring,and plays an increasingly important role in the modern securities market.From 2009 to 2019,there were 159 backdoor listing success cases.With the gradual relaxation of the requirements for backdoor listing in 2019,the backdoor listing has shown a rising trend.At the same time,in recent years,companies that have successfully backdoored have been severely punished by the Securities Regulatory Commission for fraud.Therefore,financial fraud in the context of backdoor listing has attracted widespread attention in the society.In order to obtain huge benefits from a successful backdoor listing,some companies that fail to meet the regulatory requirements for backdoor listing weigh the pros and cons and choose fraud to achieve a successful listing.This behavior infringed on the reasonable rights and interests of investors and even violated the order of the capital market.Therefore,the study of corporate financial fraud under the background of backdoor listing is of great significance.This article selects Huanrui Century,which successfully backdoored in 2016 and was punished for financial fraud in 2019,for a case study.the definition of financial fraud,fraud risk factor theory and other related theories,provides theoretical support for the following research.The third part is the case analysis of Huanrui Century backdoor listing fraud.First,it introduces the situation of the backdoor Fang Huanrui Film and Television and the backdoor Fang Xingmei,and the history of the backdoor listing,and analyzes the means and consequences of Huanrui century fraud.In the fourth part,based on the fraud risk factor theory,Huanrui Century backdoor listing fraud motivation analysis,taking the moral risk,motivation,opportunity,exposure and punishment in the fraud risk factor as the logical main line,deeply analyze the cause of Huanrui century fraud.The fifth part is the countermeasures of fraud cases of Huanrui Century backdoor listing.Based on the above motivation analysis,put forward corresponding suggestions to prevent the occurrence of financial fraud.The sixth part is the conclusion.The summary made in the previous article and the shortcomings of this article are hoped to be further improved in the following research.On the one hand,the contribution of this article lies in an in-depth analysis of the reasons and means for Huanrui Century to engage in fraud in the context of backdoor listing,and put forward corresponding suggestions for preventing fraud,so that other companies that intend to backdoor listed companies always stay alert and curb financial fraud for regulators Provide new thinking.On the other hand,the existing researches pay less attention to the financial fraud of backdoor listing,and this article has certain significance for enriching the theoretical research on financial fraud.