Game Analysis of the Investors and Public Accounting Firm under the Asymmetric Informatioin
Han Dan · Caijing lilun yu shijian · 2011
Under asymmetric information,public accounting firms and investors individually take two different strategic selections.The low trust and low quality lead to the low reputation of public accounting firms in China.After the repeated game model being built in the paper,the methods to get rid of low reputation has been found.Four efficient ways can used to protect investors and build the reputation of public accounting firms: reinforce reputation,ensure enquiry right,set high reward mechanism and increase penalties.