The Empirical Research For The Influence Of Institutional Shareholdings On The Choice Of Independent Auditor

The typical characteristic of modern enterprises is the separation of ownership and control, which can not only improve the degree of enterprise specialization but also improve the operational efficiency of enterprises effectively. At the same time, it also brings the difficulties faced by many modern enterprises--the principal-agent problems. As means of external supervision, independent audit could inhibit the "insider control" problem existed in the board of the listed company and reduce the agency costs, which has been confirmed by a lot of researches. However, on the condition of the special ownership structure and institutional background, the effect of the independent audit in the management of the listed company is not satisfactory. There are many problems commonly existed in the listed company of our country. For example, many companies select "small firm" to audit, as a result, the effect of the audit is not good. To escape from the nonstandard audit suggestion, many companies change their auditor frequently. Moreover, some listed companies lack high quality demand in the audit. Therefore, it is a common subject that how to improve the quality of independent audit in the listed company and how to improve the efficiency and effect of the independent audit.After20years of development, the development of the institutional investor has obtained great achievement. With the increase of the shareholding of the institutional investor, on one hand, the institutional investors are hardly to sell the stock without damaging their own interest. On the other hand, the institutional investor has significant advantages in information. Therefore, the institutional investor has the motive force to participate in the management of the company positively. Selecting the high quality accounting firm and improving the audit quality of the listed company to inhibit the "insider control" problem existed in the board of the listed company and reduce the agency costs are the effective ways for them to participate in the management of the company. Therefore, more and more scholars start to pay attention to the influence which is caused by the institutional investors. At present, the research in our country usually discussed the influence which the institutional investors caused to the audit quality of the listed company in the perspective of homogeneity of the institutional investors. However, because of the big difference in the institutional investors such as interest relationship, shareholding ratio, business level, incentive mechanism, shareholding time, management model, history culture and influence ability, the influence it caused to the audit quality of the listed company is different from each other. If we take the homogeneity of the institutional investors to research, it will cause the deviation of the result. What’s more, it will lead to the wrong result. Therefore, the paper adopt the scale of the public accounting firm as the standard of measuring audit quality, the A-share market listed company in the year of2007-2011as the research sample, use the logistic regression model to start the research of the influence of the audit quality which the institutional investors caused to the listed company in the perspective of the heterogeneity of the institutional investors. The content of the paper is listed as follows:Parti:Introduction. This part is the general program of the paper. First of all, on the base of the introduction of the selecting topic background, point out the research significance of this paper and state the research content of this paper. Then, based on the content, the paper raises the research method and research technology. At last, the paper points the innovation of the research.Part2:Concept definition and document review. This part definite the concept referring in the paper and review the research achievements which is related to the research content. The concept definition includes "institutional investors","the heterogeneity of the institutional investors","Jinniu fund management company" and "audit quality and public accounting firm scale viewpoint". The part of the document review includes:the character and development course of the three kinds of the institutional investors related to the paper; three representative viewpoint about the participating for the institutional investors to the company management, they are the "positive" viewpoint,"negative" viewpoint and eclectic viewpoint(considering the heterogeneity of the institutional investors); the research status of the audit quality influence that the institutional investors cause to the listed company.Part3:The theory base and the mechanism analysis. The former mainly introduce the theory which is related to the paper, including "theory of entrusted agency","theory of the company management","theory of stock right checks and balances","the Game theory" and "theory of management of the modern company". The latter mainly introduce the reason and the way at which the institutional investors influence the independent audit to choose.Part4:Empirical research, this part is the core of the paper. First, on the base of grooming the related research which is native and aboard, the paper point out the disadvantage of the existing research and put forward the hypothesis of the research. Then, based on the purpose of the paper, we select the suitable model and definite the related variable quantity. Last, we use the Stata software to conduct Logistic regression and robustness check for the data we collected, and make descriptive statistics analysis and correlation analysis according for the result.PartS:Suggestion and prospect. Based on empirical research of the fourth chapter, the research conclusions of this paper are acquired; and some corresponding proposals are put forward with the research conclusions of this paper; finally, the shortcomings of the research of this paper are pointed out, and the direction of further research is put forward, too.