| With the vigorous development of the domestic capital market,the number of listed companies and the volume of transactions among enterprises are increasing rapidly,and the companies that disclose financial fraud by CSRC are also emerging one after another in recent years.Financial fraud may help listed companies "tide over" difficulties in the short term,but in the long term it will affect their reputation and business ability,dampen investors’ confidence,and cause the stock market and economy to slump.In order to implement the "14th Five-Year Plan",in 2020,the state successively promulgated the new Securities Law and the new delisting regulations,which to a certain extent hit and deterred the financial fraud of enterprises.Based on CRIME theory,this paper studies and identifies the financial fraud of listed companies,and puts forward preventive measures from the internal and external perspectives of enterprises,so as to prevent the frequent occurrence of fraud from the root causes.Yihua Life Technology Co.,Ltd.,as the first private listed company in Shantou,Guangdong Province,has been highly praised by consumers and investors,and its total market value has exceeded 35 billion yuan.In October 2021,it was disclosed by China Securities Regulatory Commission that there was financial fraud in 2016-2019,and the amount of fraud exceeding 50 billion yuan was the highest under the new regulations.This paper briefly describes the life and financial fraud in Yihua.After thinking about the related research and theory of financial fraud,it analyzes the implementers,means,motivation,internal and external supervision of the case based on the five-factor theory of CRIME,and reveals the influence of fraud on the company and related stakeholders.The findings are as follows:(1)Liu Shaoxi,the actual controller,has risk preference,lack of professional quality and weak legal awareness,and the relevant senior management failed to perform the supervisory function,even assisted in fraud.(2)In order to meet the needs of management interests,solve the pressure of internal and external troubles and delisting crisis,the company has adopted fictitious monetary funds,adjusted profits and concealed related party transactions.(3)Imperfect corporate governance structure and internal control mechanism,dereliction of duty of audit institutions and poor efficiency of China Securities Regulatory Commission,etc.all contribute to the occurrence of financial fraud.(4)The fraud event caused the company’s market value to plummet and delisted as "one dollar share",long-term loss of net profit,huge fines and criminal liabilities faced by relevant persons involved,economic or reputational losses to minority shareholders,third-party organizations and other stakeholders,and affected the healthy development of the economic market. |
