Study on the Motivation of Corporate Financial Fraud Based on Fraud Risk Factor Theory based on the Acquisition of Longxin Technology by Connie E&M

Wenchao Lin

doi:10.54097/f32mzn74

Authors

Wenchao Lin

DOI:

https://doi.org/10.54097/f32mzn74

Keywords:

Longxin Technology; Mergers and Acquisitions of Listed Companies; Financial Fraud; Fraud Risk Factor Theory.

Abstract

Financial fraud has always threatened the healthy development of the capital market. Financial malpractice in M&A can cause huge losses to the acquirer and even face the risk of delisting, jeopardizing the legitimate rights and interests of enterprise investors and creditors. Mergers and acquisitions as one of the important forms of enterprise development and expansion, and enterprises as an important pillar of economic growth are of great significance to the stable development of the capital market. The correct M&A of enterprises can form a synergistic effect and improve the competitiveness of enterprises in the fierce market competition. This paper, with the help of fraud risk factor theory, explores the causes of corporate financial fraud in mergers and acquisitions, how to establish an effective preventive mechanism for financial fraud in mergers and acquisitions, and how to reduce the current capital market to minimize corporate financial fraud and reduce its impact and other issues to put forward proposals.

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References

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