Game Analysis on Chinese Listed Companies' Behavior of Accounting Fraud

AI Yong-mei · Science, Economy, and Society · 2011

The provision of financial reports by listed company is the game of prisoner's dilemma involving multiple participants.Actually,the results of the Nash equilibrium is(false,false),books cooked so commonly.However,it can't eliminate accounting fraud in the long term only to increase administrative penalties.We should seek multi-pronged approach,aiming at narrowing the huge gap between fraud costs and benefits,whereas the focus is to increase the opportunity costs of fraud.

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