China’s Listed Companies And Accounting Firms Game Theory Analysis Of The Financial Statements Fraud

Game Model of China’s listed companies and accounting firms and financial statements fraud is to start from the definition of financial statements fraud, defined the concept of financial statements, the three-factor theory lead to financial statement fraud, the use of three-factor theory insights into the implementation of the financial statements fraud motive, opportunity and excuse. Introduces the basic theory of game theory, composed of the seven elements of the game, the basic methods of game theory, followed by analysis of listed companies and accounting firms among the seven elements of the game, the use of decision tree game model, build game revenue function, and the game model of perfect Bayesian Nash equilibrium, come to affect the listed companies and accounting firms maximize the return game selection decision variables to calculate the threshold for each decision variable threshold by determining the decision variables size determines the choice of the game decisions. By the assumption that the probability of fraud of listed companies, the draw is the excellent performance of listed companies or poor performance of listed companies, revenue maximization decisions are not implemented financial statement fraud. The mathematical derivation derive the decision variables:impact on listed companies to select financial statement fraud of listed companies by the magnitude of the punishment of government regulatory agencies, accounting firms audit fees paid by listed companies, listed companies bribery of Certified Public Accountants degree of size, namely, the collusion probability of firm selection and poor performance-listed companies, listed companies and accounting firms collusion income derived the threshold of decision variables, the use of the threshold of the decision variables and influence decision-making factors size guide both players make the optimal decision of the revenue maximization. Solving strategies:(1) a balanced industrial development, promote economic growth, optimize the structure of listed companies;(2) the construction of social integrity, to improve the performance of listed companies and by analyzing the relationship of the impact of each decision variable, in order to curb the listed companies in the implementation of financial statement fraud the accounting firm sense of integrity;(3) improve laws and regulations, to enhance accounting laws and regulations regulate the binding.