The Impact Of Ownership Structure On The Audit Committee’s Management Efficiency

Audit committee system is the origin of a common law system of internal control, corporate governance is an important and institutional arrangements, which improve the corporate governance structure, strengthen the company’s financial reporting information authenticity and reliability of play important role. In practice, the audit committee system of governance performance after transplantation, how? Ownership structure will be the impact? These issues must be resolved. This paper attempts to use empirical research to reveal the Board’s governance structure on performance and efficiency of equity to the Audit Committee for further understanding of the system and its implementation with a better proposal.This paper describes the perspective from the agency to address the Board agent introduced for the plight of Use, and analyzes the ownership concentration, the largest shareholder of the nature of the shareholding control of the performance of the Audit Committee; and then to 2007-2009 data on listed companies test the performance of the Audit Committee and the effectiveness of such ownership structure impact. Results show that: an audit committee of the company’s low level of earnings management. This stems from the effectiveness of the Audit Committee and the efforts of its membership degree. When the largest shareholder in a relatively controlled state, the audit committee and earnings management in 10% of the level of statistical significant negative correlation, while a controlling share in the largest shareholder in the holding position; This stems from its members play the role of the Audit Committee Composition and effort related to characteristics of different shares, the shareholders of the Audit Committee requirements, members of the selection, there are different degrees of difference in motivation, thereby affecting the performance of the Audit Committee. Finally, the combination of theoretical and empirical conclusions, the Board of Auditors from the cultivation and improvement of effective demand of the main building of two levels of audit committee system to improve the effectiveness of the Audit Committee.