Case Study Of Kingenta Financial Fraud Based On CRIME Theory

With the prosperity and development of the capital market,the number of new listings has been increasing,with 428 new A-share listed companies in 2022,and the total number of listed companies exceeding 5,000.Through listing,enterprises can increase their visibility and broaden their financing channels.However,driven by greedy desire,enterprises overly pursue profits,which also leads to repeated occurrences of financial fraud of listed companies,which seriously damages the interests of shareholders and creditors,brings losses to investors,and is not conducive to the stable and healthy development of the capital market.As a leading enterprise in the fertilizer industry,Kingenta has been selected as one of the top 100 fertilizer enterprises in China for many times,and its fertilizer sales have ranked among the top ten in the industry for many consecutive years.During the period from 2015 to 2019,in order to stabilize stock prices in order to achieve business performance,Kingenta achieved the purpose of inflating income and profits by means of fictitious business and fictitious commodity issuance.In 2022,the China Securities Regulatory Commission issued the first fine,revealing that Kingenta had committed financial fraud,which attracted widespread attention from the market and investors,not only causing damage to the brand value of the company,but also causing the stock price to fall.Reduce investor trust.Although the implementation of the new securities law has a certain deterrent effect on financial fraud,in order to further curb the occurrence of financial fraud,it is necessary to strengthen the governance of financial fraud.Therefore,it is very necessary to propose effective financial fraud governance countermeasures through the study of financial fraud cases,which can supervise enterprises to improve the quality of information disclosure,which is conducive to protecting the interests of investors and maintaining the order of the capital market.Taking Kingenta as the research object,this paper first introduces the research background and significance,reviews the identification,motives,means and prevention measures of financial fraud,and expounds the research content and innovations.Secondly,the concepts and theoretical basis of financial fraud are introduced;It also introduced the overview of Kingenta,the history of financial fraud incidents and the results of penalties imposed by the CSRC;Then,using CRIME theory,we will conduct in-depth research from five aspects: financial fraudsters,fraud methods,fraud motives,supervision mechanisms,and fraud consequences,and analyze the causes,methods,and consequences of financial fraud at Kingenta.Finally,through the study of Kingenta’s financial fraud,preventive measures are proposed to eliminate the occurrence of financial fraud from the source.Enterprises improve their internal management level and reduce operational risks by strengthening the moral construction of management and improving the implementation of internal control systems.In addition,regulatory authorities should strengthen supervision of enterprise information disclosure,strengthen public supervision,and increase penalties;Audit intermediaries should improve the quality of auditing and strengthen professional quality education for audit personnel.Strengthen external supervision through regulatory authorities and audit intermediaries,protect the interests of investors,and create a fair market environment.