Fraud in Listed Companies in China: Causes, Impacts and Countermeasures

Abstract

In recent years, the issue of fraud in Chinese listed companies has been a topic of great concern. This paper aims to explore the causes of fraud in listed companies in China, its impact on the economy and investors, and propose some countermeasures. Through a comprehensive analysis of relevant literature and cases, we found that the root causes of fraud include insufficient supervision, moral hazard, financial pressure, and information asymmetry. These problems have had a negative impact on the development of China's capital market, harmed the interests of investors, and weakened the credibility of the market. However, by strengthening supervision, improving corporate governance mechanisms, improving information transparency, and strengthening investor education, we can effectively deal with fraud problems and maintain market order and investors' rights and interests.