Study Of Conlling Shareholder’s Capital Occupying, Firms Choice And Auditing Conspiracy

The problem of controlling shareholders’ capital occupying has long been a bigproblem, this phenomenon has a serious impact on the interests of other investors, thestudy found that the amount of funding which occupied by the controllingshareholders is becoming larger, seriously hindered the healthy development of thecapital market. At the same time if the accounting firm who responsible for auditingfinancial statements chose audit conspiracy, not to expose, it will produce aimmeasurable serious consequences. In this context, the research of controllingshareholders’ capital occupying and firm selection, auditing conspiracy problem willbe very urgent and necessary, it makes ensure that China’s capital market beinghealthy and orderly developing which has very important theoretical and practicalsignificance.This paper first introduces the present situation of controlling shareholders’capital occupying, highlight the seriousness of this problem, followed by the Chineseand foreign contrast to the aspects of research and conclusion, through comparing, theauthor get inspiration---for the first time relating the controlling shareholders’ capitaloccupying and auditing conspiracy, with firm selection as a bridge. After that, I do asimple introduction of the basic concept of controlling shareholders’ capital occupyingand conspiracy which do a foreshadowing for the modeling and empirical analysis.After defining the related concepts, this paper collected from2008to2011listedcompanies relevant data as sample, among of which, the measurement of controllingshareholder’ capital occupying and sample screening become one of the biggestdifficulties and innovation point, after screening the model and then make fourhypothesis, correlation analysis and regression analysis, and hypothesis of this paperare verified, and then provide for the final conclusion empirical basis.In the last part of the article, this paper draw the conclusion: this behavior causedgreat economic harm, the more serious the phenomenon is, the audit charge is morehigher, meanwhile certified public accountants issued non-standard audit opinion,thus it can be seen existing auditing conspiracy; At the same time there is no choice ofhigh quality or low quality certified public accountants, existing only chooseindependence is poor or relative "good conspiracy" accounting firm. At the end of thearticle put forward suggestions to strengthen the conclusion, respectively from theexternal environment governance construction and the internal management system,standardize the controlling shareholder behavior from multiple perspectives, such asputting forward the policy proposal. The research in this paper hopes to provide goodideas.