Research On Accounting Information Distortion And The Governance By Economics

This article is focused on player's actions and strategies under irrational institution and procedure which lead to the institutional and intended falsehood. So the behavioral falsehood and falsehood led by humane-beings' limited rationality are excluded.First of all, this article introduced the concepts which related on the distortion of accounting information, and on the basis began to analysis the causes of accounting information distortion by theories. To analyzing the motivation about the false information disclosed by accounting information producers in-depth, we would use techniques and conclusions in game theory to analyze the actions and strategies under irrational institution and procedure which lead to the institutional an intended falsehood. Then the analysis began with corporate governance and reality to establish players in the game, even developed three models after abstracting players' behavior and sequence of actions. The first model was dynamic one with incomplete information based on financing incentive and involved by small shareholders, major shareholders and management. The second one was static game model with incomplete information regulatory departments. And the third one was dynamic model with incomplete information involved by management and Government. After then, the model calculated the optimal solution to the constraint conditions and draw the corresponding conclusions.Finally, based on these conclusions and the actual situation of our accounting information market, the article gave the corresponding countermeasures.