Static game analysis of listed companies' financial fraud based on prospect theory

Yan Xu; Xiao-li Zhang; Jin-long Wang

doi:10.1117/12.2656806

13 January 2023 Static game analysis of listed companies' financial fraud based on prospect theory

Yan Xu, Xiao-li Zhang, Jin-long Wang

Proceedings Volume 12510, International Conference on Statistics, Data Science, and Computational Intelligence (CSDSCI 2022); 1251015 (2023) https://doi.org/10.1117/12.2656806
Event: International Conference on Statistics, Data Science, and Computational Intelligence (CSDSCI 2022), 2022, Qingdao, China

Abstract

To solve the problem of financial fraud of listed companies is the fundamental way to maintain the smooth operation of the whole stock market. In order to explore the related problems of the governance of the financial fraud of the listed companies, the influence of the future theory on the strategies of the related subjects is introduced and the "listed company - accounting firm - Prison" is constructed. The static game model between the management departments and the static expansion game model are used to analyze the stability conditions of the main strategy selection related to the whole financial fraud process of the listed companies. The study shows that the absolute value of perceived income of the related strategies is the key to the choice of the strategy. Therefore, it is a common means to promote the establishment of the relevant stable strategy conditions. At the same time, it is more objective and reasonable to eliminate the possible influence of the relevant main strategies on the model, that is, the selection of the reference points, the objective probability instead of the weight function and the introduction of the value function to the related variables.

Citation Download Citation

Yan Xu, Xiao-li Zhang, and Jin-long Wang "Static game analysis of listed companies' financial fraud based on prospect theory", Proc. SPIE 12510, International Conference on Statistics, Data Science, and Computational Intelligence (CSDSCI 2022), 1251015 (13 January 2023); https://doi.org/10.1117/12.2656806

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