A Study on Financial Fraud in Listed Companies Based on the Fraud Triangle Theory: A Case Study of Jiangsu Shuntian

Between 2009 and 2022, Jiangsu Shuntian conducted continuous and systematic financial fraud, inflating its revenue by up to 10.3 billion yuan. As a representative case of large-scale fraud in Chinese listed companies, it highlights serious governance failures. This paper applies the Fraud Triangle Theory — comprising pressure, opportunity, and rationalization — to analyze the motivations and methods behind the fraud. It examines both internal factors, such as weak internal controls and management incentives, and external factors like regulatory loopholes and market pressures. Based on this analysis, the paper proposes governance and regulatory recommendations to prevent similar misconduct in other listed firms. The goal is to offer insights for improving corporate oversight and strengthening financial supervision in capital markets.