Research On Corporate Reputation,Audit Or Reputation And Cost Of Capital

Reputation is an irreplaceable resource of competitive advantage,and become one of the important strategic resource of enterprise development,how to reduce the cost of capital and promote the enterprise value through the informal reputation system is one of the important problems in research of corporate governance,also attaches great importance to by theory and practice.In 2001,Chinese goverrnment in "the tenth five-year plan outline" clearly put forward,to form a batch of famous "brand and independent intellectual property rights of large companies and enterprise groups",in June 2012,the Chinese institute of CPA in "about support several policies and measures of the CPA stronger and bigger",explicitly encourage and support the development of the CPA.Emerging capital market in our country,there exist certain differences between enterprise internal management and external environment,because of the information asymmetry between enterprise and investors,it will increases cost of equity capital of enterprise;Agency conflicts between enterprise and creditors,it will increases cost of debt of enterprise,so it needs an effective corporate governance mechanism to solve the information asymmetry and the agency conflict problem among enterprise,investors and creditors,so as to reduce cost of equity capital and cost of debt.In this thesis,through informal institutions��corporate reputation and auditor reputation to coordinate the relationship among enterprise,investors and creditors,so as to further explore the economic consequences of a reputation to provide empirical evidence.Motivation based on the above analysis,this thesis puts forward the problem to study as follows:First,what is the influence mechanism of the cost of capital?Second,starting from the informal institution,what kind of impact on the cost of capital respectively from corporate reputation and auditor reputation?whether there exit a substitution effect when corporate reputation and auditor reputation(joint reputation)affect the cost of capital?Third,based on Chinese company property right system and regional economic development is imbalanced,whether there exit difference when corporate reputation and auditor reputation affect the cost of capital?On the research content,this thesis around the chain among corporate reputation,auditor reputation and the cost of capital,redefining conceptual of company reputation,auditor reputation and the cost of capital,and detail reviewing economic consequences of company reputation and auditor reputation,interpreting the relationship among company reputation,auditor reputation and the cost of capital,and then use the methods of case analysis,deductive reasoning.On the basis of the theory of reputation,incomplete contract theory,rent theory,infonnation asymmetry theory,signaling theory,principal-agent theory,the cost of capital theory,at the same time,uses the game theory as the tool of analysis,further discusses the mechanism and effect of the impact among company reputation,auditor reputation and the cost of capital,and finally test empirically the impact on the cost of capital using panel data from multiple regression analysis method to the company and the auditor reputation,at the same time,comprehensive considering the Chinese special system background and the characteristics of regional economic development imbalance,then further analyzed company and auditor reputation effect on the cost of capital in different ownership of enterprises and the marketization degree of provinces.On the basis of theoretical analysis and empirical test,this thesis puts forward the following research conclusions:(1)New institutional economics theory helps to explain the building necessity from corporate reputation to auditor reputation.From reputation theory,incomplete contract,rent theory,reputation is the gaming result of a long rational economic agents,investors and creditors will take corporate reputation and auditor reputation into account on enterprise investment or credit decisions,this laid a solid theoretical foundation and application value for corporate reputation and auditor reputation.(2)Compared with western perfect capital markets,although the rights and interests of Chinese capital market and the debt market is lack of effective legal protection,company reputation and auditor reputation also reduce the information asymmetry in capital market problems and alleviate the agency conflict through the signal transmission mechanism,it has a significant effect to decrease cost of equity capital and the debts of cost.further studies have found that auditor reputation will affect the cost of capital with the establishment of the company has its own reputation and abate,it show that company reputation is a more reliable information for investors and creditors,company reputation has substitution effect to auditor reputation.(3)Based on China's system of special environment,it found that the impact on the cost of capital of company reputation in the state-owned enterprises and non-state-owned enterprises did not present a bigger difference,but it is more evident in non-state-owned enterprises when auditor reputation effect on the cost of capital,From the listed company locates the marketization degree of difference analysis,research shows that in low marketization degree of provinces,listed companies are more intense to hire higher reputation of auditors.and in higher marketization degree of provinces,due to the company's internal governance mechanism and external environment will be improved,listed companies are smaller.enthusiasm to hire higher reputation of auditors.The innovation of this thesis is mainly manifested as follows:First,On the theoretical research,this thesis study the cost of capital as a governance mechanism unite corporate reputation and auditor reputation,and build a united theoretical framework between joint reputation and the cost of capital,make up the research paradigm apart between reputation and the cost of capital for a long time,and further improve and enrich the theory of reputation.Second,On the empirical evidence,examine the effect on China's listed companies cost of equity capital and cost of debt among corporate,reputation,auditor reputation and joint reputation,expanding the domestic and foreign existing a small amount of reputation on the cost of capital affect the experience of the research literature,reputation for the further research the impact on the cost of capital provides a theoretical basis and data support in the future.Third,On the perspectives and content of research,based on the special system environment as background,it start from the differences of the company's property rights and the regional marketization,further analysis the effect on the cost of capital between corporate reputation and auditor reputation,this provides a unique view for the economic consequences research of reputation,at the same time,it provides empirical evidence directly to solve the problem of credit discrimination in China's capital market.