The Corporate Governance Of Family Holding Listed Company And Auditor Choice

Chinnese scholars have long ignored academic research on the family business, which is contrast on the family business'major contribution to the national economy. It wasn't until 2000 domestic scholars began to family enterprise research. But It is few study concerns about family enterprise and auditing, much fewer on the relationship in auditor choice and corporate governance in family holding listed companies in which the family members participate in the corporate management.This article selects 1032 family holding listed companies of the A-share market from 2006 to 2008 as samples. It studies the relationship between the corporate governance mechanism and auditor choice from the Angle of family members participating in the corporate management, using regression analysis and setting up the auditor choice model. In order to better support the conclusion, the study not only uses the overall family holding listed companies as a sample, but also selects the FFB and NFFB as samples. We find, the company type affects the high quality auditors positively and significantly under the level of 0.01 which presents different types of companies in the auditor choice having different preferences. We also find the corporate governance mechanism of family holding listed company affects the independent auditor choice significantly, which presents external independent audit has played over government and external management function, and also shows the more obvious agent characteristics of the company more inclining to choose high quality auditors. But the results is different in different samples.The paper points out the family holding listed company should be further understood and be studied according its company type. The article also provide some suggestions for normalizing the market of audit and perfecting company law and improving the governance of family holding listed company. At the end of the article, it points out the drawbacks in the study and expects the improvement in the follow-up.