Distinguish the Investment Value of Listed Companies Through Financial Statements

Abstract

At present, the frequent financial whitewashing of A-share listed companies seriously misleads investors' judgment of the intrinsic value of the enterprise, thus affecting the final investment decision-making, exacerbating the information asymmetry and overall investment risk in the capital market. Based on this, this article systematically sorts out the relevant domestic and foreign literature in the fields of financial statement whitewashing, fraud identification and enterprise investment value evaluation, further integrates the existing research framework, and explores the areas that have not been fully paid attention to in the current academic research through multi-angle comments. The research adopts the narrative literature review method to summarize, compare and comprehensively analyze relevant theories and relevant literature at home and abroad around the three themes of “whitewashing motivation and means”, “identification methods and tools” and “value distortion and consequences”. The study found that the existing research has made rich achievements in the classification of whitewashing means and the development of identification models, but there are three widespread structural limitations: first, insufficient consideration of industry specificity; second, lack of practical solutions for small and medium-sized investors; and third, the research on new whitewashing techniques derived from new accounting standards is obviously sluggish. This article integrates the two key areas of financial fraud and enterprise valuation at the theoretical level, and provides clear literature support and direction guidance for investors to optimize the screening logic and improve the early warning mechanism for the regulatory level at the practical level.