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Research on Audit Supervision of Internet Finance

Author

Listed:
  • Hua Liu

    (School of Finance, Nanjing Audit University, Nanjing 211815, China)

  • Sheng Ge

    (School of International Education, Nanjing Audit University, Nanjing 211815, China)

Abstract

Internet finance is a new form of finance that applies capacities found on the Internet to the traditional financial industry. However, at the present stage, internet finance is faced with many problems, such as overly rapid development and non-standard operation. This paper adopted the evolutionary game theory as the analysis tool to design an evolutionary game model of government audit supervision of Internet finance, and analyzed the evolutionary stability of the strategies used by Internet financial institutions and government financial audit supervision departments. A simulation calculation was carried out by placing the calculation experimental method “Scenario–Coping”, which simulated the initial probability of different strategies adopted by both parties of the game and evaluated the influence of changing the penalty intensity of Internet financial institutions’ violation on the outcome of the evolutionary game. Based on the simulation analysis, the paper provided policy suggestions on strengthening audit supervision and promoting its sustainable development from three aspects: strengthening the construction of the Internet financial credit information system, improving Internet financial laws and regulations, and improving the early warning level of Internet financial credit risk.

Suggested Citation

  • Hua Liu & Sheng Ge, 2020. "Research on Audit Supervision of Internet Finance," IJFS, MDPI, vol. 8(1), pages 1-15, January.
    • Handle: RePEc:gam:jijfss:v:8:y:2020:i:1:p:2-:d:308832
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    References listed on IDEAS

    as
    1. Economides, Nicholas, 2001. "The impact of the Internet on financial markets," Journal of Financial Transformation, Capco Institute, vol. 1, pages 8-13.
    2. W. Brian Arthur & Paul Tayler, "undated". "Asset Pricing Under Endogenous Expectations in an Artificial Stock Market," Computing in Economics and Finance 1997 57, Society for Computational Economics.
    3. LeBaron, Blake, 2000. "Agent-based computational finance: Suggested readings and early research," Journal of Economic Dynamics and Control, Elsevier, vol. 24(5-7), pages 679-702, June.
    4. Levy, Haim & Levy, Moshe & Solomon, Sorin, 2000. "Microscopic Simulation of Financial Markets," Elsevier Monographs, Elsevier, edition 1, number 9780124458901.
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    Cited by:

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    2. Huntington, Heather & Stevens, Caleb, 2023. "Taking stock of global land indicators: A comparative analysis of approaches for a globally consistent land tenure security measure," Land Use Policy, Elsevier, vol. 124(C).
    3. Guangyu Mu & Yuhan Wang & Nan Gao & Xiurong Li, 2023. "A Novel Tripartite Evolutionary Game Model for Internet Consumer Financial Regulation," SAGE Open, , vol. 13(3), pages 21582440231, August.
    4. Hao Fu & Yue Liu & Pengfei Cheng & Sijie Cheng, 2022. "Evolutionary Game Analysis on Innovation Behavior of Digital Financial Enterprises under the Dynamic Reward and Punishment Mechanism of Government," Sustainability, MDPI, vol. 14(19), pages 1-18, October.

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