An Empirical Study On The Metaphase Report's Voluntary Audit Demand Of Chinese Listed Companies

The demand for external audit service originates from the intention to smooth transaction among contracted parties in commercial society (including shareholders, creditor, management and potential investors). In the independent audit market, supply and demand play a very important role. As two sides of the market, especially the demand side,it has close relationship with the independent audit quality and the ongoing of the whole independent audit market. Recent years, there are many falsification of account occurred. They lead to the bankruptcy of the public accounting firms that audit the firm, report. During this situation, it is very important to research the audit demand.Lots of fruitful studies about audit demand have been made by overseas accounting scholars. However, to a large extent, these studies neglected the inherent characteristics of countries in economic transformation. Therefore, the aim to explain and predict the audit practice of countries in economic transformation could not be reached. Based on the above mentioned reason, a series of theoretic and practical problems of audit demand were discussed in this paper by methods of theoretic analysis and empirical testing. Then, the internal and external administration surroundings of Chinese listed companies will be improved.There are three parts in this paper. Corresponding contents and conclusions are as follows:First part of this paper includes chapter 2 . Based on the introduction & review of the theoretic controversy among agent theory, information hypothesis, signal transferring hypothesis and insurance hypothesis, the applicability and restriction of above mentioned theories (or theoretic hypothesis) in economic transformation countries were discussed by normative approach in chapter 2.Second part of this paper includes chapter 3 and 4 and it is the core of this paper. In chapter 3, through one by one matching between research samples and controlled samples, the emergence cause and primary influential factors of the Chinese listed companies'voluntary audit demand were testified by methods of mean value test, Wilcoxon signed-rank test and Logistic regression. The result shows that the Chinese listed companies are liable to spontaneously retain external independent audit for relaxing the agency conflict and transferring outstanding achievement signal. At the same time, the agency cost, asset-debt ratio, asset size, net asset yield and independent director are all primary influential factors accelerate the Chinese listed companies to choose external independent audit.In chapter 4, through comparing the discretionary accruals between the companies whose financial report has been audited and the companies whose financial report has not been audited, the function of audit improving the financial information were testified. Firstly, based on one by one matching between research samples and controlled samples, the primary influential factors of the Chinese listed companies'discretionary accruals were testified by methods of single variable test. Then, the function of audit improving the financial information was analyzed by multiple linear regression method. The result shows that the audited companies have lower discretionary accruals, audit actually confine management, opportunism and promote t quality of the accounting information.Third part of this paper includes chapter 5. In this chapter, based on summarizing of the positive study conclusions of the second part and proceeded with creating and leading the Chinese listed companies'voluntary audit demand, policy proposals were put forward. These policy proposals included: 1) tentative plan of consummating section structure of accelerating the state-owned shares'decrease; 2)long-term programming of consummating internal supervision mechanism, such as consummating independent director system.