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Case analysis of financial fraud in Zhangzi Island based on the fraud triangle theory
- 1 Dongbei University of Finance and Economics, Dalian, China
* Author to whom correspondence should be addressed.
Abstract
This paper conducts an in-depth analysis of the financial fraud case of Zhangzi Island based on the Fraud Triangle Theory. The study identifies three key factors that drove Zhangzi Island's financial fraud: pressure, opportunity, and self-justification. Pressure stemmed from the risk of delisting due to consecutive losses for two years; the opportunity was due to internal control deficiencies and the difficulty of verifying biological assets; and self-justification was the management's rationalization of unconventional methods to ensure the company’s survival and development. The study suggests that enterprises should strengthen internal controls and cultivate a culture of integrity. Regulatory agencies should leverage modern information technology to enhance supervisory efficiency in order to effectively prevent and combat financial fraud.
Keywords
fraud triangle theory, Zhangzi Island, financial fraud, case analysis, preventive measures
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Cite this article
Zhang,J. (2025). Case analysis of financial fraud in Zhangzi Island based on the fraud triangle theory. Journal of Applied Economics and Policy Studies,18(4),1-7.
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Journal：Journal of Applied Economics and Policy Studies
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