Ownership Structure, Company Property And The Demand Of Auditing

As the reform of Chinese listed-firms' ownership, the structure of ownership has changedgreatly. During the reform, a very important point is that state-owned controlling is beingchanged to private controlling. Therefore, the listed-firms which is uncontrolled by state becamemore and more. This dissertation divides Chinese listed-firms into two groups, which iscontrolled by state and uncontrolled by state. By using the data of Chinese listed-firms from2003 to 2005 , this dissertation empirically studies the influence of company property andownership structure on the demand of auditing. And it also investigates the influence of theprocess of marketization, industry concentration and the change of ownership structure on thedemand of auditing.The empirical result shows: company property has a significant influence on the demand ofauditing. The listed-firms uncontrolled by state tend to get modified audit opinions easily. And inthe different property of company, its ownership structure has different influence on the demandof auditing.In addition, in the place of higher process of marketization, the listed-firms have modifiedaudit opinions more easily. Also, the industry concentration and the change of ownershipstructure exercise influence on the demand of auditing. The more drastically the listed-firmscompete, the more strongly they refuse modified audit opinions. The listed-firms whichownership structure changed tend to have qualified audit opinions and accept modified auditopinions more easily.