Research On The Impact Of Audit Opinion And Audit Quality On Bank Loan Decisions

Bank loan risk is not only related to the stable development of the banking industry;also related to the distribution of social resources,the development of the enterprises, and even the security of the global economy.The U.S. subprime mortgage crisis triggered by the global financial crisis in2007proved this fact. At the same time,as the deepening of the reform and opening up and the continuous development of market economy,the banking credit management has gradually changed from the "government control" to "the marketization" in our coutry.After the marketization of credit management,the sensitivity of the bank loan risk to economic environment will increase,meantime, independent decision imply the entity should be at their own risk. Therefore,China,as the world’s second largest economic entity,is imperative to strengthen the credit risk management of banking,safeguard the national economic security and the stability of the global economy.China’s banking industry is in the search for a more scientific and more reasonable risk control method to reduce the credit risk, many Banks began to ask the customer to provide audit report, using the audit information to make decisions. Based on this background,This paper try to research audit opinions, audit quality influence on bank lending decisions, want Banks to use the audit opinion, audit quality transmission of information, able to more deeply understand the debtor information, raise the level of credit risk assessment and management.This paper is divided into five parts.The first part is the introduction.To outling the background of topics, research significance,and the viewpoints of scholars from domestic and foreign.The second part is the basic concepts and related theories.First of all,define the audit opinion,audit quality,the concept of bank lending decisions, and the measure of the types of audit reports,audit quality standards, the categories of bank lending decisions.Second,analyzes the basic theories include the Information Asymmetry Theory,Signaling Theory,Transaction Cost Theory for the empirical research. The third part discusses how the audit opinion and audit quality influent bank lending decisions,and combine the current condition to state audit opinion and audit quality can lead banks make correct dicisions.The fourth part is the empirical analysis part,chosing the sample data and variable index selection,build a model to carry on the empirical analysis.Empirical study results show that the audit opinion,audit quality is related to bank loan time limit and bank loan scale.Fifth part is the research conclusion,summarizes the theoretical and empirical research results,proposes sugguestion to improve banks to assess and manage credit risk,and to improve enterprises to enhance their financing capacity,then this paper look forward to the direction of the furture research.Innovation and characteristic of this article is that theoretically,utilize the Tranaction Cost Theory and combine the Information Asymmetry Theory, Signaling Theory,roundly demonstrate bank lending decision need the help of audit opinion information and audit quality informantion.Besides,the current research mostly focus on the function of the audit opinion,lack of the research of the audit quality and the research of the comprehensive effect when audit opinion combine audit qualit.This paper first research how audit opinion effect bank lending decisioin,then research how audit quality effect bank lending decision,it help to rich the reaearch of Decision Usefulness of the audit information,broaden the application scope of the audit information.