An evolutionary game of collaborative regulation over corporate information disclosure

To facilitate the smooth implementation of the registration system reform in China's securities market, this paper examines the collaborative regulation of information disclosure by listed companies, focusing on the mechanisms and influencing factors between government regulators and market self-regulatory organizations. Using collaborative regulation theory and prospect theory, an evolutionary game model is developed to include listed companies, market self-regulatory organizations, and government regulators. Matlab simulations are used to analyze the impact of changes in various factors on the system's evolutionary outcomes. The findings suggest that regulatory costs, rewards and penalties, and loss aversion are key factors influencing the effectiveness of government-market collaborative regulation. Effective co-regulation between the government and the market can be achieved by providing suitable incentives to government regulators and market self-regulatory organizations, reducing regulatory costs for both parties, enhancing reputational losses, and increasing punishment and loss aversion for disclosure violations by listed companies.