Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 32 , 10 November 2023


Open Access | Article

Financial Fraud in China Concept Stock: Identification, Reasons, and Solutions

Zhaotong Ding * 1 , Siying Chen 2 , Huanxi Ma 3
1 Peking University
2 Wuhan University of Technology
3 High School Affiliated to Nanjing Normal University (IB)

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 32, 86-97
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Zhaotong Ding, Siying Chen, Huanxi Ma. Financial Fraud in China Concept Stock: Identification, Reasons, and Solutions. AEMPS (2023) Vol. 32: 86-97. DOI: 10.54254/2754-1169/32/20231572.

Abstract

In recent years, with the fraud of Luckin Coffee, the financial fraud of China concept stock has become the focus of attention again. In this regard, This work first analyzed the characteristics and causes of financial fraud, and then tried to use M and F scores to test the data collected, to see whether M and F scores could warn people before fraud. After that, reflecting on our research, this work pointed out some characteristics and reasons of financial fraud in China concept stock, and finally gave some solutions to financial fraud.

Keywords

fraud, detection, M score, F score, Chinese concept stock

References

1. Chen, J. (2022). What is Fraud? [online] Investopedia. Available at: https://www.investopedia.com/terms/f/fraud.asp.wiki.mbalib.com. (n.d.). MBAThink Tank

2. Encyclopedia, the global professional Chinese economic and management encyclopedia. [online] Available at: https://wiki.mbalib.com/wiki/%E8%B4%A2%E5%8A%A1%E6%AC%BA%E8%AF%88.

3. Wayman, R. (2021). What is a Disclosure: Explained in Plain English. [online] Investopedia. Available at: https://www.investopedia.com/articles/analyst/073002.asp.

4. Messod D. Beneish, Charles M.C. Lee, &D. Craig Nichols (2012). Fraud Detection and Expected Returns. Available at: http://ssrn.com/abstract=1998387

5. Patricia M. Dechow, Weili Ge, Chad R. Larson, &Richard G. Sloan (2011). Predicting Material Accounting Misstatements. Contemporary Accounting Research Vol. 28 No. 1 (Spring 2011) pp. 17–82

6. Ren.Z.C.(2021) .zai Mei shangshi Zhongguo qiye caiwu zaojia ji zhili yanjiu[Research on financial fraud and governance of Chinese enterprises listed in the United States](Master’s thesis, Northeast University of Finance and Economics). https://kns.cnki.net/KCMS/detail/detail.aspx?dbname=CMFD202301&filename=1022067991.nh

7. Chen.B.(2012). zhonggaigu weiji fansi: cong caiwu zaojia dao chengxin queshi [China concept stock crisis reflection: from financial fraud to lack of integrity], Zhengquan fayuan (02),301-315.

8. Bi.F .(2013). shilun haiwai jiekeshangshi de shenji wenti: jiyu lvnuoguoji caiwu zaojia shijia de fenxi[On the audit issues of overseas backdoor listing: an analysis based on the financial fraud event of Rino International]. Caikuaiyanjiu(04), 63-65.

9. Wang.J.M. & He.D.(2022). zhonggaigu jiji zuokong de caiwu wubi fengxian zhili xiaoying: jiyu Benford dinglv zuncongdu jianyan de anli yanjiu [The governance effect of active short selling on financial fraud risk in China stock market: a case study based on Benford’s Law compliance test]. Zhongguozhucekuaijishi (09), 42-46. doi:10.16292/j.cnki.issn1009-6345.2022.09.028.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-085-1
ISBN (Online)
978-1-83558-086-8
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/32/20231572
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated