A Research on Identification and Prevention of Corporate Financial Fraud Behaviour in the Context of High-Performance Commitment: Taking Aerospace Communications’ Merger and Acquisition of HiPAD Intelligent as an Example

Business School, East China University of Political Science and Law, Shanghai, 201620, China

^* Corresponding author: 210514010086@ecupl.edu.cn

Abstract

In recent years, there are often high premium acquisitions based on high-performance commitment in corporate mergers and acquisitions. The performance commitment is intended to alleviate the information asymmetry between the two parties of mergers and acquisitions, but the pressure brought by the high-performance commitment often triggers the company’s financial fraud behaviour. This paper will use the case study method to select the classic case of Aerospace Communications merger and acquisition of the HiPAD, in-depth analysis of the merged party HiPAD of the financial counterfeiting means, and corresponding to the identification of signs of financial fraud research. This paper analyses the abnormal signs in the public disclosure information of HiPAD from the unique perspectives of financial information identification and non-financial information identification, parent company and subsidiaries, providing a reference direction for the financial fraud identification path. Finally, it puts forward a universal proposal for the prevention of corporate financial fraud in the context of the pressure of the performance commitment, which provides a feasible method for the similar mergers and acquisitions and high-performance commitment cases.