Analysis of Financial Fraud Based on the GONE TheoryA Case Study of Hangzhou Century Co., Ltd.

Convertible bonds allow creditors to convert their claims into company shares under certain conditions. Because of this debt-equity conversion feature, the issuance conditions, pricing and conversion value of convertible bonds are highly susceptible to financial information. Increasing the market value of a company's stock by exaggerating earnings or concealing debt may lead to convertible bond investment decisions based on misinformation, which in turn affects investors and the healthy operation of the market. Based on the GONE theory, this paper analyses the motivation of financial fraud in convertible bond documents and proposes corresponding preventive measures for its characteristics. Through the research and analysis of this type of financial forgery, the preventive governance of financial forgery can be further strengthened, which not only helps to protect the company's reputation and ensure the accuracy and reliability of the financial report, but also helps to attract and maintain the trust of investors, avoid possible legal risks and economic losses, and create a transparent and honest financial environment for the market to promote the efficiency of the market and the fair competition of enterprises.