A Case Study On The Financial Fraud Of Yaben Chemical Company Based On Risk Factor Theory

As a major problem in the world,financial fraud has hindered the good operation of the market economy.In recent years,China’s securities market fraud frequently.According to the CSRC,as of December 29,2020,a total of 24 market ban decisions involving 54 people had been published,in addition,there were 114 administrative penalty decisions,it involved 300 key stakeholders,29 companies and two Accounting networks and associations.In 2020,the CSRC monitored many typical cases ofillegal activities,and this paper selected “The new crown epidemic heat”,illegal information disclosure of Aben chemical as the main research object.The situation withthe new coronary pneumonia is still serious.But in the domestic research to the financialfraud,has not involved the Yaben chemistry,only has one is studiesits marketing strategy.In this paper,the risk factor theory,literature analysis,case analysisof Aben Chemical Research,analysis of the causes of fraud,and then put forward the governance program,with a view to the prevention of fraud,governancehelp.Itisfound that Aben chemical mainly adopts the methods of illegal statistics of income and fictitious business contracts.At the individual risk factor level,they are mainly to remedy the poor financial situation,to remedy the closure of the Nantong and Binhai subsidiaries,to maintain the R & D and Innovation Funds,to raise funds to set up companies,to continue to expand the business map,and to remedy the moraldeficiency of the corporate personnel.At the level of general risk factors,high concentration of equity,imperfect internal control mechanism,slow government regulation,failure of Accounting networks and associations due diligence,less punishmentafter exposure and so on.In view of the causes of Aben chemical fraud,this paperputs forward the corresponding solutions.Enterprises should carefully make investment decisions,do a good job in overall budget management,train and assess the moral quality of personnel,optimize equity institutions,improve internal governance,improve audit quality,in addition,it is also a powerful measure to strengthen externalsupervision and punishment,put an end to the gray area of law,advocate the establishment of short-selling institutions,exert social supervision and put an end to continuous auditing.