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

Xu Chen ()
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Xu Chen: Zhengzhou University, Business School

A chapter in Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), 2025, pp 81-88 from Springer

Abstract: 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.

Keywords: GONE theory; Financial fraud; Supervision (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-874-5_12

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DOI: 10.2991/978-94-6463-874-5_12

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