The Research On Auditor Choice Behavior In China Growth Enterprise Market

“Financing difficulty”has always plagued our entrepreneurial SMEs，theestablishment of the Growth Enterprise Market in October2009which provides aplatform for entrepreneurial firms for financing， many entrepreneurial companiesneed to face the problems of listing successfully. But the entrepreneurial IPOcompanies generally are not know by the capital markets， there is a seriousinformation asymmetry， and therefore depends on high-quality auditors to assurancethe company’s financial information， but high-quality auditors tend to disclose thetruth financial information to the outside world which is not good to the companies.Therefore，China’s GEM companies in the IPO how to select auditors is worthy of ourstudy.Corporate auditor choice for the essence of the choice of audit quality， througha literature review， the paper concluded that large-scale represents a high qualityaudit services， and as a research-based paper this conclusion. After the study ofdomestic and foreign auditors selected were reviewed， the paper summarizes thethree major moving companies selected by the auditor: reduce agency cost drivers，delivery and insurance favorable signal motivation. In this paper， these threemotives theoretical analysis and hypotheses， while the other three factors putforward according to the special circumstances of the GEM market， namely thegeographical factor (ADDRESS)， industry factors (HY) and market factors (IM)After the proposed hypothesis， facing the three factors were analyzed.Finally， selected from2009to2012in the GEM352companies as samples takenLogistic regression model analysis， and ultimately come to the followingconclusions:(1) This paper selected five representatives of the agency cost variables， onlyfirm size and asset-liability ratio and quality auditor selection there was a significantrelationship， but the overall contribution of the model is not high， so the paperargues that agency theory of entrepreneurship IPO market auditor selection board toexplain the behavior of insufficient power.(2) This paper selects underwriter reputation (UND) this variable as a signaltransfer factor， found underwriter reputation and businesses to choose high-qualityauditors significant positive correlation， indicating that companies have a motive inthe choice of auditor to pass a favorable signal to the outside world， the signal Our theory can explain the GEM IPO market auditor choice behavior.(3) This article does not choose insurance for auditors conduct empiricalmotives， but by theoretical analysis， and combining the actual situation of China’slegal environment and GEM， obtained insurance auditor choice motives weakconclusion.(4) The article also according to the special circumstances of GEM， select thegeographical factors (ADDRESS)， industry factors (HY) and market factors (IM) ofthe three variables auditor choice behavior was analyzed and found that thegeographical factors and industry factors significantly associated with high-qualityauditor choice， but the overall contribution of the model are relatively large， so thispaper concludes that geographic factors and industry factors are important factors thatdetermine the quality of two auditors selected.