Research On The Lose Of Accounting Integrity Issue Based On The Perspective Of Game Theory

Honesty,honor to use.Honesty is a personal virtue and the nature of human.Credit means honest and trustworthy to inside and outside.In true life,however,the phenomenon of dishonesty exists in various fields.In all these cases,lacking of accounting integrity has the greatest impact on the economic life.Domestic and foreign scholars have studied the reasons and disadvantages of lack of accounting integrity on economics,ethics,game theory,morality and law in order to awaken the conscience of honesty.In the analysis of the game of lack of accounting integrity,accounting information providers and users are the main players of the game.Accounting information providers generally refer to business managers.The users are always investors,creditors,audit departments and the China's Securities Regulatory Commission.Model of game between providers and users has been built through mathematical statistics on cases of lack of accounting integrity in recent years.At the same time,try to add new assumption related to ethics.After long term research,conclusions are as follows.First,reduce the cost of investigation for investors,creditors,audit departments and the China's Securities Regulatory Commission.Reduce cooperation between investors,creditors and audit departments and cheat enterprise to reduce the loss.Increase the psychological costs brought by business managers when choosing cheat.These will promote business managers to behave honestly.Second,increase the extent and probability and penalty of punishment imposed by the China's Securities Regulatory Commission.Reduce the additional revenue that enterprises can obtain when they choose to cheat.Meanwhile,reduce the extra loss when investors refuse to invest and creditors refuse to lend after managers choosing cheat.It will increase the probability of investors choosing investment behavior,creditors choosing to lend,and audit departments choosing an effective audit.Third,increase the extra income that business managers choose to cheat.Reduce the extent and the penalty punished by the China's Securities Regulatory Commission for cheating enterprises.It will increase the probability of the China's Securities Regulatory Commission's supervision.Therefore,these solutions should be useful to regulate the accountants' behavior and to promote the practice of integrity: improve the incentive system for business managers,establish enterprises integrity files,strengthen the integrity education and ethics education,improve the identification of investors,improve the civil compensation system,increase penalties,reform the organizational form of the accounting firms,improve audit departments' employment system,improve the accounting standards and system,draw into the market exit mechanism and other means.