Abstract
Today, earnings mismanagement in China's enterprises has become a serious problem as managers conduct financial fraud by means of earnings management, hindering China's overall economic development. Upon shareholders' requirements and investors' concerns, managers should disclose real financial information. The essay analyzes the revenue function generated by the manager and the shareholder through an evolutionary theory model where the managers team of the enterprise and shareholders are both game parties. After building the model, the essay utilizes Python to stimulate the theoretical model to analyze both parties' behavior to explain the process of evolutionary game theory.
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