Research On The Evolutionary Game Of Corporate IPO Fraud Under The Background Of Registration System Refor

With the reform of the registration system of stock issuance in China,the audit process of enterprise listing has been significantly simplified,which makes the capital market more open and inclusive.As a result,more companies are jumping into IPOs to raise more money.When enterprises fail to meet the IPO listing conditions,they may adopt false disclosure and other means to conduct financial fraud.However,sponsors are not completely independent when providing guarantees and advice for an IPO.They often have a vested interest in the company’s management,that is,collusion.Because the interest cooperation between issuers and sponsors is very hidden,it makes it difficult for regulators and outside investors to identify the damage is also difficult to estimate.The failure of sponsors to be diligent undermines the financial order to a large extent,and therefore deserves our attention.Issued by building enterprise,sponsor agencies and regulatory evolution game model,the analysis between the three subjects of interest relations and stability evolution as a result,and further explore the government regulatory costs,to the sponsor of the fines and IPO earnings are key factors to the influence of different interests of the participants.It is found that: in the IPO process,the behavior choices of different participants are reflected in the dynamic process of interaction and influence the convergence of evolutionarily stable strategy,and each evolutionarily stable strategy is inseparable from the choice of "real issue" of the enterprise itself.Based on the model data study,this paper chooses the fraudulent IPO of Amethyst Storage and its sponsor’s failure to be diligent and responsible as the case study object,illustrates the nature of corporate fraud in practice combined with the game model,analyzes the motivation and means of corporate financial fraud,and the reasons for the low service quality of sponsor agencies to guide enterprises to go public.Then,from the different interest subjects involved in the IPO,the governance scheme is proposed to crack down on corporate fraud.Urge public investors and regulatory authorities such as China Securities Regulatory Commission to carry out stricter inspection on the examination reports issued by third parties and the accounting information disclosed by IPO companies,so as to effectively avoid investment losses and promote the more reasonable and efficient operation of the capital market.