Region Features And Impact Factors Research On China's Securities Audit Market

Our country has experienced reform from the highly centralized planned economy to the market economy system, the local market segmentation is precisely the unique phenomenons which in the economical switch process, is also the important content discussing by theory session.At present, the local market segmentation almost infiltrated into product markets, key elements of the market, services market and other markets of the various components of system. While a large number of study tours to China's market segmentation problem, but research has been focused on our product markets and key elements of the market and lose sight of the geographical Services market Segmentation. Audit market as an integral part of the services markets also has the segmentation phenomenon. The customers in the choice of accounting firms show obvious region characteristic. Some local governments in their own interests, exclude foreign firms in the local practice, this allows the local accounting firm in the care of local protectionism to maintain a high market share and artificially create the geographical segmentation of audit markets.Although China has already completed the office getting unhooked the remanufacture at the end of 1998, most listed Companies strongly use Accounting Firm in their province to make the annual audit. Simultaneously many offices's main audit operations also come from listed Companies in the province, the geographical characteristics of the audit market is still very evident. Along with the development of China's auditing market, the research results on the audit market also unceasingly to increase, for example, the audit markets structure, the audit markets efficiency, to audit the market regulation and so on, But the audit market region angle of view's research are few, the paper from the point of view of geographical studies the geographical characteristics of China's securities markets. Audit Market segmentation is not conducive to the geographical enlargement of the scale of firms, to the detriment of the audit market concentration increase; it is the restriction factor on the audits market healthy development. Thorough understanding our current audits market's region characteristic, may provide the evidence supporting for our country service market area division research. Simultaneously discusses of listed companies on the choice of accounting firms geographical factors could provide the evidence for the present our country whether have the government intervention in the market, is of great realistic significance.Regarding the audits market's region division questions, the overseas research are very few, the reason is audits the market with China to compare, the Western developed country audited the market to pass through hundred year development process already to achieve the relative consummation marketability degree, the market concentration degree has been very high, has formed present by"four big"the oligopoly market primarily. Developed country's audit market does not have the obvious region characteristic under such market mechanism, therefore audits the market segmentation is not the overseas auditing research subject matter. Therefore, this article mainly has combed domestic audit market segmentation question's research literature. Although these literatures involved from the different angle the audited market's region questions, but did not discuss our audit market regional characteristic specially, did not have further analysis the factors influencing listed companies to chouse the local offices. Lv Zhaode,Zhu Xingwen's article (2007) specially conducted the research on our country audited market's region characteristic, but only relies on some descriptive statistical data to estimate that the current audit market the region centralism characteristic is because of regional protectionism, has not established the government intervention variable. But audits the market the region characteristic whether to cause by Local authority's administrative intervention to be also worth further studying, this article is precisely discusses from this angle audits about the influencing factors on the market's region characteristic.This article's audit region characteristic refers to the Accounting firm the customer whether with the Accounting firm in the identical area (province, autonomous region or municipality), as well as to audits the influence which from this produces. This article judges whether a customer as accounting firm's a local customer, is mainly refers to this office the registration with the customer registration whether is the identical area. If they are in the identical area, is the local customer, otherwise belongs to the different customer. This article through analysis correlation data to our audits market discovers that our country's present audit market region division phenomenon is still obvious. Therefore this article utilized the request - proxy theory, the rational economic man supposition and the administrative intervention and so on correlation theories favors to be listed the choice local office, the office gives priority to the local customer this kind of region division phenomenon to carry on the explanation, based on this and proposes following several suppositions:H1: the probability of Listed Companies choosing the local office and the local office audit service ability supply capacity is remarkable positively related;H2: Listed Company's audit expense remarkable influences they choosing local Accounting firm;H3: the probability of Listed Companies choosing the local office and their ratio of debt is remarkable negatively related;H4: the probability of Listed Companies choosing the local office and their Property net profit ratio is remarkable positively related;H5: the probability of Listed Companies choosing the local office and the Local authority holding is remarkable positively related;H6: the probability of Listed Companies choosing the local office and Central authorities holding are remarkable positively related;H7: the probability of Listed Companies choosing the local office and their Total assets is remarkable negatively related.This article empirical analysis part mainly profits from Lu Zhaode and Zhu Xing's article research technique, add the government intervention variable, has selected from 2003 to 2005 the Shanghai and Shenzhen A To be listed company's annual report disclosure correlation data, carries on the descriptive statistical analysis and the Logistic regression analysis using the SPSS 13.0 software, the research causes our country to audit the market the region division phenomenon influencing factor. Looking from the Logistic return result, integrates the model variable to have Assets (To be listed total assets) and Localgov (Local authority holding). Localgov (Local authority holding)'s coefficient are positive, Assets (To be listed total assets)'s coefficient is negative, And counts below the P=0.05 level obviously, has supported this article suppositionH3: the probability of Listed Companies choosing the local office and their ratio of debt is remarkable negatively related; H5: the probability of Listed Companies chooses the local office and the Local authority holding is remarkable Positively related. This show in our country's negotiable securities, To be listed quantity, the scale as well as the Local authority administrative intervention is affects listed companies to choose the Accounting firm locus the important attribute.