Author(s)

Lu Wang ¹

Affiliation(s)

¹ School of Accounting, Guangzhou College of Commerce, Guangzhou, 511363, China

Corresponding Author

Lu Wang

ABSTRACT

In recent years, China's capital market has been developing rapidly, and at the same time, various problems have emerged one after another. Financial fraud has become a prominent issue in recent years, causing huge losses to the majority of small and medium shareholders. However, in view of the current financial development of Chinese listed companies, financial fraud has not been effectively supervised and controlled, which makes investors lose confidence in the capital market and directly affects the normal operation of the capital market, and also poses an obstacle to the country's economic development. Therefore, fraud prevention and control is a top priority for the development of capital market. Through the fraud risk factor theory, the article analyzes Star Technology Company to understand the means and motives of its financial fraud, and proposes countermeasures for five aspects: fraud motive, moral quality, fraud opportunity, probability of being discovered and the nature of the degree of punishment, aiming to provide reference for the prevention of financial fraud in the future and promote the healthy and benign development of China's capital market.

KEYWORDS

Fraud risk factors, financial fraud, star technology, countermeasures

CITE THIS PAPER

Lu Wang, Study on the Motivation and Governance of Financial Fraud of Star Technology Corporation. Financial Engineering and Risk Management (2023) Vol. 6: 17-24. DOI: http://dx.doi.org/10.23977/ferm.2023.060503.

REFERENCES

[1] Bologna G.J., Commercial Crime Lindquist R.J. &Wells J.T. The Accountant's Handbook of Frau. John Wiley &Sons Inc, 1993.
[2] Niu Yiheng. Research on Motivation and Governance of Financial Fraud in Listed Companies: From the perspective of fraud risk factor Theory and Game Theory. Journal of Finance and Accounting, 2020 (12): 99-103.
[3] Wang Xingfang, Zhang Yu. Study on the first illegal Delisting case under the new fraud Risk factor Theory. Friends of Accounting, 2020 (22): 46-52.
[4] Jia Jingni. Research on Financial Fraud and Countermeasures of Listed Companies -- Based on Risk factor Theory. Accounting and Learning, 2020: 35-36.
[5] Huang Shizhong. Eight reasons and eight strategies of financial fraud in listed companies. Finance and Accounting, 2019 (16): 4-11.
[6] Huang Shizhong, Huang Jingjing. Review on the Characteristics and Warning Signals of Financial Statements Fraud. Journal of Finance and Accounting, 2004 (23): 4-9. 
[7] Min Xuyao. Research on Financial Fraud of Listed Companies under Fraud Risk Factor Theory -- Taking D Company as an example. Shanghai Commerce, 2021 (10): 146-147.
[8] Liu Yu. Research on the prevention and control of financial fraud based on risk factor theory. China Collective Economy, 2021 (26): 139-140.
[9] Zhang Tong. Research on the means, causes and Countermeasures of financial report Fraud of Chinese Listed Companies. Finance and Accounting Learning, 2019 (12): 80-81.
[10] Miao Aihong. Research on Financial Fraud Governance of Listed companies based on fraud risk factor theory -- A case study of Erkang Pharmaceutical. Journal of Finance and Accounting, 2020, (20): 100-103.
[11] Wen Qiongyao. Research on Identification and Countermeasures of Financial Fraud in Chinese Listed Companies. Modern Generation Business, 2020, (26): 148-150.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics