Analysis of Xin Tai Financial Fraud

  • Fan Yang School of Management, Shinawatra University, Thailand
  • Sakul Kiatjeeravirat School of Management, Shinawatra University, Thailand
  • Phitipat Amponstira School of Management, Shinawatra University, Thailand
  • Chutimon Archasappawat School of Management, Shinawatra University, Thailand
  • Purinet Buasup School of Management, Shinawatra University, Thailand
  • Siripha Photchanachan School of Management, Shinawatra University, Thailand
  • Yadanan Kruayruksa School of Management, Shinawatra University, Thailand
Keywords: Financial Fraud, Theory of Fraud Risk Factors, Financial Statement Analysis Prevention and Control

Abstract

             The purposes of this study were to; 1) study the way Xintai Electric conducted Financial Fraud. 2) study the approach to prevent Financial Fraud.

             The sample consisted of the financial fraud case of Xintai Electric, the first company in the Growth Enterprise Market (GEM) market that was forced to withdraw from the market after the China Securities Regulatory Commission issued the Delisting Opinion.

             The instruments used for gathering data were the main financial indicators used in the analysis come from Xintai electric financial statements and annual reports.(financial statements publicly issued by listed companies)Then analyze through collection and arrangement.

             The research results were the lack of legal awareness of the integrity of the company's internal managers. In order to go on the market and to keep the market after the market, it is due to the performance of the company in order to protect the city. Counterfeiting is not easy to find, and the punishment is very low after being discovered. All factors combined together make Xintai Electric successfully cheat. Finally, aiming at the emergence of fraud, according to the motivation of fraud, we put forward some measures, such as strengthening moral quality construction, introducing external supervisors, high reputation independent directors, implementing audit rotation system and improving illegal costs.

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Published
2020-04-01
Section
Research Articles