Empirical Research Of The Market Reaction To Audit Opinion In China’s Stock Market

China’s Shanghai Stock Exchange and Shenzhen Stock Exchange have been established in the nineties of the last century, and from then on listed company began formal business, and assume the responsibility of many useful accounting and financial information disclosure outward. In order to ensure that the information disclosed by the listing Corporation is true and effective, it is very important to conduct an independent audit of the company’s financial statements. For a long time, the research on the influence of audit opinion on the securities market has been a hot issue for investors and relevant information users.The publication of the information of the audit opinion, especially the publication of the non standard unqualified audit opinion, is an important criterion and basis to judge whether a company’s annual report can be reliable. But often encountered is cap issued by the audit conclusion and stock market investors of the obtained information is not consistent, together with information on the user’s cautious heart. In recent years audit opinion may not to stock prices change.On the basis of previous research, this paper attempts to study the audit opinion in the market reaction after the announcement from the empirical point of view, that is, compared with the previous studies, the relationship between the audit opinion and the stock price changes,whether the audit opinion has information content,This article aims to explore the value relevance of independent audit in China and provide empirical evidence.Firstly, this paper reviews the domestic and foreign market reaction to the audit opinions from relevant literature, analysis of the audit opinion types and its formation mechanism, based on principal agent theory, signal transmission theory, efficient market theory and then combining with China’s national conditions and institutional background, issued A shares listing Corporation in China as the research sample, using the cumulative abnormal return as the substitution variable of the market reaction, the empirical study was conducted by using the event study method and the multiple regression analysis method in 2012-2014. The following conclusions are obtained through the analysis:limited influence on other variables, China’s stock market can identify the differences between the standard audit opinions and non-standard audit opinions, but can’t identify the differences between different types of non-standard audit opinions. The study concluded that:investors of China’s stock market concerned more about different types of audit opinion and different content of non-standard audit opinion, but paid less attention to the different forms of non-standard audit opinion.In order to further address these issues, standardize the development of China’s stock market, we also need to apply the following these suggestions:(1) Strengthen the formulation and implementation of independent auditing standards of China’s stock market; (2) Strengthen the supervision of information disclosure in stock market; (3) Strengthen the education and protection of investors.