Research on the Impact of Financial Fraud from the Perspective of GONE Theory

DOI

10.2991/978-94-6463-874-5_12How to use a DOI?

Keywords

GONE theory; Financial fraud; Supervision

Abstract

In recent years, financial fraud phenomena have become increasingly prevalent in the market. Therefore, exploring the motivations behind financial fraud and establishing effective prevention mechanisms has emerged as a critical research topic in both theoretical and practical circles. The GONE theory provides a framework for analyzing the occurrence of financial fraud through its four core dimensions (greed, opportunity, need, and exposure), establishing this research methodology as fundamentally significant for dissecting analogous incidents. This paper utilizes the GONE theory framework to conduct a four-dimensional analytical approach (greed, opportunity, need, exposure) in dissecting Zitian Technology’s financial fraud motivation, while systematically examining the consequential impacts of this incident and ultimately formulating preventive alerts and evidence-based recommendations. The research findings identify four primary drivers of the fraud incident: management’s profit-maximizing greed motive (Greed dimension), fraudulent opportunities stemming from internal control failures (Opportunity dimension), financial manipulation demands under performance-based bet pressure (Need dimension), and low detection risks exacerbated by regulatory lag and information asymmetry (Exposure dimension). These interconnected factors collectively constitute the core causal mechanisms underlying corporate misconduct. This study proposes a series of countermeasures including enhanced punitive measures, which provide both theoretical insights for identifying financial fraud motivations and practical guidance for preventing systemic risks in capital markets.

Copyright

© 2025 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  - Xu Chen
PY  - 2025
DA  - 2025/11/03
TI  - Research on the Impact of Financial Fraud from the Perspective of GONE Theory
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 81
EP  - 88
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_12
DO  - 10.2991/978-94-6463-874-5_12
ID  - Chen2025
ER  -