The Study On The Relationship Between Audit Opinion And Bank Loan Renewal Decision

This paper reviews some domestic and foreign researches on the relationship between the audit opinion and banks’credit decision-making. We found that whether at home or abroad, the scholars did not reach a unified conclusion, and in our country the research on this issue haven’t yet reached a mature stage. On the basis of relevant theory, this paper points out that the auditors can tell the bank creditors whether the company’s accounting information is true and reliable, and help the banks make better credit decisions. However, based on the special realities of our country, the banks may pay more attention to whether the enterprise has a good solvency or whether it has sufficient assets as collateral. So maybe the audit opinion is not an essential consideration while the banks are making a credit decision.In this paper, we adopted the mainstream research methods, the multiple regression analysis method. But in order to solve the endogeneity problem of multiple regression model, we firstly attempt to use PSM estimation method in the audit opinion field to make a comparison about the two different methods, and explore more suitable methods for our research.The empirical results show that:(1) Multiple regression result shows that the modified audit opinion significantly and negatively impacts the bank loan renewal decision;(2) In the PSM estimation method, we found that the ATT of modified audit opinion on the bank loan renewal decision is significant before matching, but not significant after matching. Maybe under the regression method, the impact of audit opinion on the bank loan renewal decision was overestimated;(3) With the inconsistency of the conclusions obtained under the two methods, we discussed the applicability of PSM method. There are unavoidable endogeneity and other problems of multiple regression methods. Theoretically PSM method can solve the problem, and obtained a more steady causality conclusion.