Financial Fraud Case Study Of Easy-visible Co.,Ltd.based On Crime Theroy

The rapid development of China’s capital market has been accompanied by frequent problems of financial fraud and numerous fraudulent methods.Every year,some listed companies in the A-share market are involved in financial fraud,which covers a wide range of issues.Not only did it deal a blow to the capital market,but it also caused heavy losses to investors in the market.In recent years,the state has put forward a number of policies to promote the development of supply chain finance.But behind the development is a high incidence of criminal activity in our supply chain companies.The SFC clearly pointed out in the briefing on the handling of cases in 2021 that new industries such as supply chain finance and commercial factoring have gradually become the new "vest" of fraud.Inflated revenues from factoring and supply chain businesses have been used by a number of companies in recent years to commit financial fraud due to the concealment and sophistication of their operations.In the existing financial fraud case studies,there are fewer people who analyze the fraudulent behavior by establishing a systematic connection between all relevant factors of financial fraud.At the same time,the existing studies on financial fraud cases are more analytical on manufacturing companies,especially pharmaceutical manufacturing industry.The research has not paid enough attention to the new counterfeiting methods in the new industry,and there is a lack of corresponding counterfeiting case studies in the context of the current rapid development of supply chain finance.This paper uses mainly literature research and case study methods and the case study method to apply the CRIME theory as the main framework of the research to the analysis of the case of financial fraud of Easy-visible Co.,Ltd.The article analyses financial fraudsters,their methods,motives,regulatory mechanisms and consequences,focusing on factoring fraud.Finally,the article proposes corresponding preventive measures against financial fraud by listed companies from multiple aspects.This paper finds that:(1)In listed companies that engage in financial fraud,their actual controllers often have strong risk appetite and ambition,and often lack legal and social responsibility awareness.They use high shareholding ratios and complex interpersonal relationships to form insider control over listed companies,providing convenience for the occurrence of financial fraud.(2)Listed companies have financial fraud companies,their actual controllers often have a strong risk appetite stronger and greater ambition,and a relatively large shareholding ratio,to be able to implement control over the company.(3)The performance commitment will intensify the motive of financial fraud.When a major shareholder has a high proportion of equity pledged for a number of years,there is a greater likelihood that he or she will face liquidity problems and a greater risk of financial fraud.(4)Deficiencies in the corporate governance structure,large loopholes in the formulation and implementation of the internal control system,as well as inadequate external supervision by the firm and the government,have allowed financial fraud to take advantage of the situation,causing a bad impact on the listed company and the company’s stakeholders.