The Research On Game Analysis Of IPO Fraud

As Chinese Capital Market existed for just more than twenty years and the structure was very sole, listing has become one of the most important ways of raising money. However, the threshold of listing is too high for many middle and small‐sized enterprises, they turn to forge to obtain the opportunity. Besides, IPO system is changing from approval model to registed model, which creats more uncertain in the process of marketization and makes it easier to forge in the process of IPO.In the process of IPO, game models for the interaction of the market subject is established on the basis of analysis of market subject’s benefit demand.The factors which lead tothe forgery are indicated by analyzing the result of this model. In the meantime, Thisarticle takes the example of Wanfu Biotechnology Agricultural Development Co.,Ltd.(abbreviated to WFSK in the following article)for example, and analyses this casefrom the angle of game theory, indicating that the establishment of responsibilitymechanisms is of important to turn the balance from the balance of false state to ideal state.On the basis of above game analysis, this article put forward base methoeds for thegovernment of IPO fraud, mainly from aspects of building and improving oversightmechanisms laws and regulations.The contribution of this paper is to provide new ideas to solve the IPO fraud throughcombining the game theory research with relevant case analysis. However, this article alsohas many shortcomings, for example, ignoring unlimited game model and multiplayergame model in the process of building models,taking rough calculation of the profits in theprocess of case study, and so on.