Political Connection,Auditor Choice And Audit Opinions Of Pirvately Listed Companies

According to the enterprise ecological system theory, the enterprises exist in aliving environment, and they are not isolated. In another words, the enterprises notonly need to face the highly competitive market environment, but also deal with thevalue of the complex environment. The market environment is including competitors,suppliers, customers of the factors such as enterprise external environment system;And on another successful enterprise important environmental-non-marketenvironment, relative to the market environment is concerned, is by the social,political, legal system and other factors of the system, its characteristic for enterpriseand government organizations, non-governmental organizations, the public andinteraction between and influence of the relationship.Our country is transforming from the central high concentration of plannedeconomy to market economy system. Since the reform and opening policy there hasbeen many years of exploration and development, the market economy has becomethe dominant trend of our economic system, and the government, this only "thevisible hand" gradually from the seat back at the scenes, but China’s economicmarketization inevitably affected the trace of the economy in a planned way, eachfield of the influence of the government still continue to play a role. In fact, even ifnot consider the market economic system is developed this factor, the companydevelop strategy and business activities must consider the external macroenvironment political factors, the government’s industrial policy is closely linked withenterprise’s survival and development. At present, the government still control manyresources and right, political contact network can not only help enterprise to dynamic policy in advance, create business information advantage, and through the network topolitical interpersonal trust for enterprise to bring the development to all kinds ofimportant conditions and resources. A large number of studies have also shown thatthe private enterprise leaders can make the enterprise identity politics to get financingto convenience, more government subsidies and into the government control industry,and other interests, to the enterprise management activities and have an importantimpact on the economic consequences, also may affect the auditor choice decisions.This paper choose the private listed enterprise in2008-2010in Shenzhen,Shanghai stock exchange as samples, the empirical test private listed companies tothe auditor choice of political ties and the influence of the audit opinions. The resultsof the study show that, the key executives (chairman of the board of directors orgeneral manager) has the political contact of private listed companies tend to choosethe "ten accounting firm "for audit, and the strength of the links between political, thebigger the results of the more notable. At the same time, given the quality of thesurplus, political contact reduce the listed company is "nonstandard" issued by theprobability of the audit opinion.