Research On Financial Fraud Drivers Of Listed Companies Based On Fraud Risk Factor Theory

At the beginning of the 21 st century,financial fraud has become the focus of the world,even in China.In recent years,there are more and more financial fraud cases of listed companies,and the amount of fraud continues to increase.At the same time,the methods and ways of financial fraud are also varied.Once the financial fraud of the listed company is found out,it will not only affect the reputation of the company,but also make investors lose confidence in the listed company,and the credibility of the regulatory department and relevant audit department will also be reduced.Therefore,it is necessary to further explore the problem of financial fraud,avoid misleading investors to make decisions as far as possible,reduce economic losses,avoid uneven allocation of resources,and promote the orderly operation and healthy development of the capital market.Firstly,based on theoretical research at home and abroad,this paper describes the dynamics of fraud motivation,identification,means and prevention countermeasures successively.Then this paper analyzes the development characteristics and fraud characteristics of the entire pharmaceutical industry from a macro perspective,and introduces the financial fraud cases of Hunan Er-kang Pharmaceutical from a micro perspective.Finally,according to the Hunan Er-kang pharmaceutical financial fraud case analysis,for enterprises,individuals and relevant regulatory departments respectively put forward prevention suggestions.Through the case study,the following conclusions are drawn: First,on the choice of cases,this article is based on Hunan Er-kang pharmaceutical as the research object,because its financial fraud has typicality,Hunan Er-kang pharmaceutical company has long been considered as the pharmaceutical industry’s "white horse",the prospect of the occurrence of fraud show that high performance is good enterprise there are likely to be financial fraud motivation,at the same time its fraud characteristics with the pharmaceutical industry has the similarity,Therefore,it is selected as the research sample;Second,financial fraud is not a hole,can be identified by some financial signals,such as higher than the industry’s profit margin,income growth and inventory backlog does not match;Third,Hunan Er-kang pharmaceutical financial fraud not only has an impact on the corporate image,but also has a negative impact on other stakeholders and the industry,so to prevent the occurrence of financial fraud needs the joint efforts of all sectors of society.