Greed, Opportunity, Need, and Exposure: The Formation Mechanism and Empirical Identification of Financial Report Fraud

Taking Kangmei Pharmaceutical as an Example

DOI

10.2991/978-94-6239-604-3_29How to use a DOI?

Keywords

GONE Theory; Financial Fraud; Logistic Regression; Kangmei Pharmaceutical; Corporate Governance

Abstract

According to the GONE theoretical framework, the study focuses on investigating financial fraud in A-share market in China (20182023) based on logistic regression model. The re-sults show that the management shareholding (greed), lack of equity checks (opportunity), pressure to grow (need) and poor supervision (exposure) are significant in promoting fraud. The theory is also highly explanatory in such a case of Kangmei Pharmaceutical [2]. The recommended governance suggestions are made on the corporate structure, external control, and incentive systems.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yang Tang
PY  - 2026
DA  - 2026/02/26
TI  - Greed, Opportunity, Need, and Exposure: The Formation Mechanism and Empirical Identification of Financial Report Fraud
BT  - Proceedings of the 5th International Conference on Economic Development and Business Culture (ICEDBC 2025)
PB  - Atlantis Press
SP  - 262
EP  - 272
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-604-3_29
DO  - 10.2991/978-94-6239-604-3_29
ID  - Tang2026
ER  -