Research on Theory and Practice of Financial Frauds

Abstract

With the expansion of the Chinese securities market and the gradual standardization, a large number of financial frauds have been exposed. This has become a serious problem in the development of Chinese securities market, and must be paid sufficient attention. This article firstly provides some relevant literature on financial frauds in China and abroad, with listing the causes, common methods and prevention methods. Then based on the multiple cases of financial frauds on the Shanghai and Shenzhen stock exchanges, common methods of financial frauds are summarized. Finally, this article uses GONE theory to analyze causes of financial frauds and proposes preventive measures from the perspective of multiple market participants in response to these problems.