Research On Financial Fraud Of Blue Mountain Technology

With the continuous development of market economy,China’s capital market has developed into a multi-level capital market.While the capital market provides diversified financing channels for all kinds of enterprises,there are also some problems.Financial fraud occurs frequently and is repeatedly banned.In recent years,many listed companies whitewash the financial statements through fictitious sales and procurement business,inflated income,and overvaluation of assets.Blue Mountain Technology Company is using a variety of means to whitewash the statements,and was punished by the CSRC for financial fraud.Financial fraud not only affects the reputation of Blue Mountain Technology Company and the stakeholders of Blue Mountain Technology,but also leads to the loss of minority shareholders of Blue Mountain Technology to make wrong investment decisions,and seriously disrupts the order of the capital market.Therefore,through the analysis of the fraud means and consequences,causes and identification of typical cases,the countermeasures to reduce the occurrence of financial fraud have important practical significance.This paper takes Blue Mountain Technology as the research object,and first analyzes the financial fraud means and the consequences of financial fraud of Blue Mountain Technology.Secondly,the qualitative analysis method is adopted to analyze the motivation of financial fraud from four factors: greed,opportunity,need and exposure based on GONE theory.Then,the quantitative analysis method is adopted to select 16 indicators of greed,opportunity,need and exposure,find out the six indicators that most significantly reflect the relationship with financial fraud,and build a model to identify financial fraud based on binary Logistic regression.The financial data of the sample companies and Blue Mountain Technology were randomly selected and put into the model to verify the accuracy of the model,and the model was used to judge the probability of financial fraud.Finally,through the study of the motivation and identification of financial fraud,the governance countermeasures of financial fraud are proposed according to the four factors of GONE,and the market participants jointly maintain the stability of the capital market.The innovation of this paper is that,on the basis of qualitative analysis of the causes of financial fraud,we use the quantitative analysis method to build a model to identify the probability of financial fraud,which can be used to identify whether the company has signs of fraud.