Research On Audit Supervision Of Government Officials Opportunism Behavior In Local Government Debt Financing

With the implementation of comprehensive financial reform and the promotionof urbanization process, the purpose of the local government debt is raising fund forinfrastructure investment. The expansion of the local government financing platformleads to the increase of the quantity and risk of the local government debt. Therefore,the research on the national audit supervision on the local government debt has greatsignificance.First of all, economic person hypothesis, public choice theory and principal agenttheory were used to analyze the formation mechanism of the opportunism behavior oflocal government officials. The formation mechanism of the opportunism behaviorincludes behavior motivations, realization condition and manifestation during thelocal government debt financing process. Secondly, basing on the analysis of theessence and target of national audit this paper investigate the theoretical basis andmechanism of the national audit supervision on the opportunism behavior of localgovernment officials during the local government debt financing process. Themechanisms include the audit information disclosure mechanism, the responsibilityperformance evaluation mechanism and punishment mechanism. Thirdly, this paperempirically examines the effectiveness of national audit supervision on theopportunism behavior of local government officials during the local government debtfinancing process. The results show that when the state audit information disclosureand audit punishment were enlarged the opportunism behavior of local government officials during the local government debt financing process were more likelysupervised. However, different local audit institution has different disclosure andpunishment effect. The responsibility performance evaluation index and mode are notestablished. At last, this paper raise advice that the national audit supervision on theopportunism behavior of local government officials during the local government debtfinancing process should be strengthenedThe innovation of this paper are listed as follows: Firstly, this paper investigatesthe opportunism behavior of the local government officials during the localgovernment debt financing process and enriches the study of the formationmechanism of local government debt. Secondly, this paper analyzes the theoreticalbasis and mechanism of the national audit supervision on the opportunism behavior oflocal government officials and expands the research on the supervision mechanism oflocal government debt. Thirdly, this paper empirically examines the effectiveness ofnational audit supervision on the opportunism behavior of the local governmentofficials during the local government debt financing process and provides theempirical evidence to enhance the national audit supervision. In addition, theresponsibility performance evaluation index and mode are established to providepractical tools for national audit institution. The advices which improve theresponsibility performance evaluation mechanism and punishment mechanism haveguiding significance for national audit institution to strength the supervision.