Evolutionary Game Analysis Of Policy And Regulation For The Major Shareholders’"Tunneling" Strategy

With the development of capital market in our country for20years, the mech-anism as well as size and orders of capital market all have made the consider-able progress. As we are pleased to see the progress of capital market, mean-while we should also face the shortcomings of capital market. All these problemsmainly caused by the concentration of ownership of the listed companies.Thus, the“tunneling”strategies in controlling shareholders have become very common. Inthis hot issue, the domestic and foreign economists and game theorists both havemade a lot of in-depth studies and researches, then they have obtained many con-structive results. However, most of these study used classic game theory as toolto analyze the precautions of controlling shareholders’“tunneling”strategy. Butthe classic game theory has some limitations which require that all participants aretotally rational.In reality, it is so difcult to fnd a person who has perfect rationalability and perfect predictive ability. The evolutionary game theory truly is thecombination of both the game analysis and dynamic evolutionary theory. The evo-lutionary game theory depends fnite rationality and ethnic groups as theory basis.So the study results have more practical meanings. This paper uses evolutionarytheory to build a game model for controlling shareholders’“tunneling”behaviors.In the analysis, we build the single ethnic group and multi-ethnic group game model.However,in the light of the complexity of monitoring “tunneling”behaviors in thereality, we introduce the supervision factor in the model, and discuss the expectedearnings and the infuence of the prevention of “tunneling”behavior. Then it solvesthe replicated dynamic equation, and analyzes the evolutionary stable strategy ofthe model. After discussing the results of model, it fnds out the factors which afectcontrolling shareholders’ behavior and some precautions of its behaviors. It tries to provide the decision-making reference for government to supervise and regulateshareholders’ behaviors.