The Independent Audit Opinion, Industry Environment And Business Credit Contract

As the developing country,our financial system is still not perfect,bank credit is generally more difficult to access,thus commercial credit becomes an important means of external financing, commercial credit is more important to the national economy (especially non-state-owned economy). However, in the special system, relative to the financial intermediaries, more serious conflict is between commercial creditor and the debtor. At the same time, the global economy is facing the increasingly fierce market competition, the companies face enormous risks and uncertainties, if the companies’ ability to continue concern crisis, it will lead to huge losses to the commercial creditors, including the interests of stakeholders. And for various reasons, the credit loss of our enterprise business is very important, bad and doubtful debt of the enterprise is very high. The lack of corporate commercial credit deteriorate business environment, plague the survival and development of enterprises, and destructed the good economic operation and development of society as a whole. Therefore, the protection of the legitimate rights and the providing decision-useful information for the commercial creditors is particularly urgent.Independent audit is the forensic process of financial and accounting information, independent audit opinion issued by the auditor will affect the reliability of financial reporting information, it is helpful to reduce the information asymmetry between providers and enterprises, and it helps enterprises reduce information asymmetry-suppliers to establish a trust relationship. Enterprises-suppliers trading behaviors need reliable financial reporting. The independent audit improves the reliability of the company’s accounting information theoretically, so that independent audit plays an important role in the guarantee. However, in recent years, a large number of audit cases appeared, such as Enron, World Communications, Xiamen liter exchange and other major audit scandals at home and abroad, the role and status of independent audit faces a great deal of questioning and challenges. In this context, the scientific understanding of the actual role of the independent audit opinion in the commercial credit contract or governance effect is of great significance.In addition, the effects of independent audit decision vary due to environmental changes. Existing researches are more concerned about the impact of bank loan covenants, the institutional environment, legal environment and economic environment, seldom study the industry environment. But the industry competitive situation and the degree of fluctuation are important factors that commercial creditors must take into account in the process of providing commercial credit. Because in the completive or fluctuate industry, commercial creditors face more risk. Because Independent audit can reduce information risk, whether in the completive or fluctuated industry, it can play a role to protect the interests of the commercial creditors? Therefore, it is necessary to examine the independent audit whether can play a different role in the commercial credit contract to provide different levels of support for commercial credit financing.For these reasons, this article examines the role of independent audit opinion in the commercial credit contract. For example, whether the commercial credit contract influenced by the independent audit opinion?More critical, independent audit opinion to play a role or governance effect in commercial credit contract whether is associated with the industry environment?The answers to these questions will contribute to a clearer understanding of the independent audit role in the debt covenants or governance effect, also will contribute to explore the law of independent audit opinion, to improve the value of independent audit in economic activity (especially commercial credit contract activities.This article is divided into six parts:The first part introduces the research background and significance of the topic, and then asks questions, determines research ideas and the main content, makes a brief presentation about the expected innovation and inadequate.The second part is the literature review, mainly introduces the mainstream views of the domestic and foreign scholars from all walks of life, and makes a brief comment about the current literatures, explores the future trends.The third part is the basic theory, mainly from the theoretical point. introduces the important concepts and theories; provide a theoretical basis for subsequent empirical research.The fourth part is the empirical research design, first puts forward research hypotheses, and then describes the data sources and sample selection, and defines the relevant variables, and finally establishes a multiple regression model.The fifth part is the empirical results and analysis, first introduces the descriptive statistical analysis, followed by exploration of the relationship between variables, again divided the full sample and grouping samples for multiple regression comparative analysis, robustness finally, the cross-variable testing.Part VI is the research conclusions and outlooks, this part is mainly based on the empirical results, summarizes the research findings and contributions, and then make the appropriate policy recommendations, and finally pointed out the limitations of the thesis, and future research directions.