Analysis of Jin Tongling’s Financial Fraud Case from the Perspective of the Fraud Triangle Theory

School of Economics and Management, Xi’an University, Xi’an, China

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

Financial fraud has been more common in China’s capital market in recent years, severely harming investor interests and market confidence. From 2017 to 2022, Jintongling, a listed company primarily involved in high-end fluid machinery, used fake documents, bogus transactions, and other methods to inflate its income by 930 million yuan and profits by 430 million yuan. Its long-term fraud is typical and alarming. With the fraud triangle theory as the core, combined with the AMPS analysis model of structured data analysis and problem-solving framework, this paper first puts forward the question of why Jintongling has committed financial fraud for five years and what role the pressure, opportunities, and excuses of the fraud triangle play and then collects and disassembles the core data related to fraud such as finance, regulatory penalties, and the market. Through the verification of the fraud triangle theory, this paper constructs the Jintongling fraud transmission chain from the transmission of pressure to the utilization of opportunities, and then looks for excuses as support to implement fraud and cover up the fault. Finally, it shows the enlightenment obtained from fraud cases.