Research On Financial Fraud And Governance Of Listed Companies Based On GONE Theory

Currently,with the trend of slowing down the economic growth rate,our country has entered a epoch of economic development known as “new normal”,and the growth of the capital market also pays more attention to its quality.However,listed companies’ violations of laws and regulations have emerged one after another,especially financial fraud has intensified.In 2020 alone,the Shenzhen Stock Exchange,the Shanghai Stock Exchange and the China Securities Regulatory Commission announced 356 enterprises that violated regulations due to false profits,fictitious records,major omissions,and other matters.Financial fraud is extremely harmful.It not only causes the reputation and financial crisis of listed companies themselves,violates the rights and interests of many stakeholders,but also severely disrupts the normal and methodical movement of the capital market,and has become an pivotal obstacle to the high-quality growth of the national economy.Therefore,it is essential to seek for powerful strategies to refrain the financial fraud of listed companies.Firstly,this article summarizes the existing literature on financial fraud at home and abroad,determines the notion of financial fraud,and expounds the theory that will be used in this research process GONE theory.Subsequently,a fraud case involving a relatively large amount and timeliness was selected as the research object,the basic situation of the fraud was sorted out,and the fraud methods were analyzed in detail.Then,based on the four factors of GONE theory,a thorough exploration of the fraud intentions of the case company is carried out.Ultimately,based on the aforementioned motivation analysis,the corresponding prevention measures for financial fraud of listed companies are proposed from the perspective of GONE theory: From the perspective of the greed factor,strengthen the regulation of the personal behavior of senior executives to curb greed;From the perspective of opportunity factors,rationalize the equity proportion of listed companies,perfect the firm governance framework,and effectively implement internal control systems to reduce opportunities for fraud;From the perspective of demand factors,compose development schemes that are in keeping with the enterprise’s factual circumstances,and intensify the management of the pledge of controlling shareholders’ equity to reduce unhealthy demand;From the perspective of exposure factors,improve the audit quality of certified public accountants,encourage the public to supervise and report,improve relevant laws and regulations,and strengthen supervision and punishment.It is expected that multiple measures can be taken to work together to reduce the possibility of financial fraud and drive our country’s capital market to move forward in a more orderly and excellent direction.