The Manage Research Of Ipo Finacial Fraud Based On Game Theory

The stock market has an effect on the modern society with its unique function, plays an important role in the economic development of our country, financing through the stock market is better then bank loans,private lending and other traditional debt financing in the aspect of improve efficiency in the use of funds, financing to achieve fairness, optimize the allocation. In recent years, IPO accounting fraud cases continue to emerge, the healthy development of the capital market seriously hamper. Because of China’s capital market has a relatively short time, has not yet established effective market order, coupled with the current stock market IPO is in an important period of transition from the approval system to the registration system, to the development of capital market will bring more severe test. In terms of Listed companies, relatively lower threshold, and the current delisting system has just been set up, is still not perfect, the existence of these factors have provided an opportunity for the breeding of IPO accounting fraud. From the green earth to Edmond branch to the sea Nexis listed on the IPO, regulators of fraud penalties have been gradually strengthened, which will undoubtedly play a role in the market, but still need to take more measures to further strengthen the management to the securities market.This paper first summarizes the identification signal about financial fraud and corporate governance on financial fraud, and then summarizes IPO fraud related theories, including earnings management theory, principal-agent theory and game theory, the former two are the reasons about fraud phenomenon, game theory is the analysis method of IPO financial fraud the use of. Then this paper gives a brief introduction of fraud event, and make a game analysis. The analysis thinks, IPO subject include the following, Company intends to issue,The accounting firm,Underwriter, SFC and Investor. This paper constructs the game model between accounting firms and issuers, SFC and Company intends to issue,SFC and Underwriter, then combined with the enterprise IPO to construct a game tree flow, the construction of the game tree to issue enterprises as the starting point, to investors as the end, the issuance of enterprise first choice(fraud, true), then intermediaries choose(low quality supervision, high quality supervision), then the Commission to make a choice(supervision, no supervision), if the Commission found no corporate fraud,the media had a certain probability to find corporate fraud, finally the investors choose(buy, do not buy).The game analysis results show that:(1) The accounting firm to provide a high probability of quality supervision and the SFC punishment, supervision efficiency, loss of reputation is proportional to, and inversely proportional to the cost of supervision. The intensity of punishment, the probability of false information issuing enterprise and the Commission’s regulatory efficiency, loss of reputation, fixed costs are inversely proportional to the extra income, fraud.(2) The higher the efficiency of supervision, supervision of the stronger, the lower the probability of corporate fraud, on the other hand, corporate fraud probability will be larger. At the same time, by the report or the greater the probability, the probability of providing false financial information of enterprises is also lower, on the other hand, enterprises will increase the probability of fraud.(3) The underwriter and illegal violation probability proportional to income, and inversely proportional to the violation cost, supervision efficiency. From the game analysis, strategy choice of regulatory agencies is the key to break the IPO fraud, regulatory behavior will affect the agency and intends to issue corporate strategy selection.On the basis of game analysis, this paper puts forward the basic measures of IPO governance of accounting fraud, mainly from the three aspects,listed enterprises,Agency,and Regulators.Specifically include the following: 1, improve the modern enterprise system, improve corporate governance structure and internal control system, establish and perfect the system of independent directors of the company; 2, improve service quality and strengthen its construction, raise awareness, do "information assurance"; 3, intensify supervision of the company, the practice of implementing the information disclosure mechanism; 4, strengthen supervision of intermediary service organizations, improve the law costs and 5 penalties; 6, pay attention to the role of media supervision of public opinion; 7, to standardize the audit appointment system; 8, establish and improve the issuer and investors active payment claim mechanism.The contribution of this paper is that this paper use the game theory into the study of IPO governance of financial fraud, constructs the game model with IPO basic fraud process, analysis of the game behavior of the interests of stakeholders in the process of fraud, trying to put forward the game model from the existing equilibrium to the basic approach to equilibrium conversion, on this basis put forward IPO fraud control measures. But this paper also has some deficiencies in the game model of the building is not to explore the infinite time game, and in the process of case application, due to the limit of data can only be roughly estimated profits.