Research On The Effectiveness Of The Supervisory Board Based On The Non-standard Audit Opinion

The public listed company announced financial report is an important basis of decision making for investors,the information quality of financial report is closely related to the economic interests of investors;the audit opinion,as an "the third person" independent from listed companies & investors,the identification for information quality of certified public Accountants,investors attach great importance to it,and it will have an important impact on decision-making behavior to them;the supervisory board as an important internal monitoring mechanism,responsible for company financial check,plays an important role in the statutory duties.To external investors,the supervisory board on the audit opinion in particular non-standard unqualified opinion from the attitude to some extent,reflects the norms of company behavior in the role.In 2006,new accounting and auditing standards promulgated by the context,this paper select 813 non-standard audit opinions issued by the listed company's annual report from Shanghai and Shenzhen stock markets between 2003-2008 as a sample,through the analysis of the supervisory board of non-standard audit opinion on the attitude and its influencing factors,trying to evaluate the supervisory board function in our country.This article using Logistic regression analysis method,research in five aspects on the supervisory board from the property structural characteristics of attitudes,signs of earnings management,accounting firm size,the type of non-standard audit opinion and policy factors,based on the theoretical analysis,the assumptions are following:There is a negative correlation between the ratio of the largest shareholder and the effectiveness of the supervisory board,and there is a positive correction between the degree of checks and balances to shareholders and the effectiveness of the supervisory board;The supervisory board can identify and suppress signs of earnings management effectively;There is a positive correlation between the effectiveness of the supervisory board and the quality of the independent audit;For different types of non-standard audit opinion,the supervisory board will have different reaction;The introduction of new policies can strengthen the functions of financial Supervision of the supervisory board. After examining,this dissertation provides some important conclusion as follows: (1)In regard to characteristics in the structure of property rights,there is not a significant correlation with the attitude of the supervisory board and the Shares held of the first major shareholder,However,There is a Significant negative correlation between the degree of checks and balances shareholders.As a important result in this paper,the conclusion beyond our presume,which reveals that there may be collusion on the major shareholder in our stock market.(2)There is a Significant negative correlation between the attitude of the supervisory board and the signs of earnings management,which illustrate that the supervisory board of the listed companies is not expected to play an inhibitory effection on the earnings management of the management board.(3)There is not a correlation between the quality of the external independent audit and the attitude of the supervisory board.It shows that,the supervisory board did fall to support high-quality audit in our listed company supervision.(4) On the reaction of the type of audit opinion,There is no significantly different between the attitude of the supervisory board and the types of audit opinion,to some extent,which shows that there are not discriminate opinion for the board of supervisors on different type of audit opinion.(5) There is a significant positive correlation between the policy variables and the attitude of the supervisory board,which shows that the introduction of accounting standards and perfection of related laws and regulations by the supervisory board played a positive role for financial supervision effect.It provided a theoretical basis for us to take advantage of the policy to improve effectiveness of the supervisory board.Statistics showed that China's financial supervisory role of the supervisory board is relatively weak.In China's stock market,there may be exist the phenomenon of conspiracy between the major shareholders;Meanwhile,we find that Policy played an important role in enhancing the effectiveness of the supervisory board.The conclusions have great significance to strengthen the functions of financial supervision of the supervisory board,improve corporate governance of listed companies and strengthen investor confidence,thereby promoting the healthy development of the securities market.