The Empirical Study Of The Relationship Of The Institutional Environment And Auditor Choice: Evidence From China's Listed

Since 1980, China's accounting system restoration has experienced accounting firm decoupling restructuring, merger of Certified Public Accountants and Audit and Control Association, the international accounting firm to enter the domestic market and other major changes, China's audit market has undergone great changes. Especially from China by the end of 2005, China's audit market has been completely open to foreign and domestic business of increasing the host. In addition, due to different levels of development throughout Market Index and government intervene, which means that enterprises choose accounting firms in the external environment is very different, so a direct impact on the results of the enterprise choice behavior. Therefore, this paper decided to major cities across the country the financial imbalances in the macro-environment system environment to study the micro-enterprise system environment for China's listed companies, accounting firms choice behavior.In this paper, along two directions of governance environment and institutional environment, respectively review the literatures of domestic and foreign-related audit opinion on the information content of the study and on the basis of the review the literatures to bring up two assumptions of this article. In the part of empirical research in this paper, this article adopts the experience research method of China's securities market research, from the perspective of debt capital to make a survey of Audit opinion. In this test, use the public data of listed companies to test the two hypotheses proposed in this paper.In this paper study found that, if other things being equal, an enterprise in which the development market economy better ,which government intervene less , the more inclined to choose theBIG10. If other things being equal, an enterprise in which agency costs more, in which is oversea, the more inclined to choose theBIG10. The listed companies'audit choice were significantly related to the nature of controlled shareholders,state-controlled listed companies were more likely to choose the small auditor than non-state-controlled listed companies . Sensitivity analysis results with the previous findings of the study are consistent, indicating the results of empirical studies is strong.Finally, on the basis of the empirical studies, advance the limitations future research directions of this study.