Political Association,Audit Opinions And The Cost Of Debt Financing

Along with the reform and opening up,the rapid development of private enterprises in China,the rapid development of the private economy for our country's made tremendous contributions to the national tax revenue and national employment,the private economy has more and more important role in national economy.However because of the special economic system and the basic national conditions in China,enterprises cannot fully protect property rights,compared with the final control people is government of state-owned enterprises,private enterprises operating higher barriers to entry,debt financing and financing cost is higher.In the "relationship" as the characteristics of the traditional culture of our country,combined with China's current legal system of limited level of development,private enterprises well versed in the technology to establish close relationship with the government to the economic benefits of.So private enterprises pursue political association set up closely with the government,using the political relations to solve the financing problems in the enterprise management has become a common phenomenon.The research method of this paper is the combination of normative analysis and empirical test method.Empirical research with normative analysis as the guidance,the standard analysis based on the empirical research.Normative analysis method is divided into two levels: first level is to comb and summarize and related literature at home and abroad,this paper extracted influential to this article research content;The second level is in the interpretation of the basic theory on the basis of in-depth theoretical analysis,put forward the basic hypothesis of this article.In empirical research,basic research method in empirical accounting,econometrics and other related theory as the instruction,through the establishment of empirical model,selection of private listed companies as the research object,using the data from 2011-2015 as the research sample wood by regression analysis,verify the theoretical assumptions are put forward.Based on the model and the statistical analysis on attention closely integrated with economic theory,makes the analysis conclusion is supported by empirical test,and have sufficient theoretical basis,to achieve the unity of the quantitative analysis and qualitative analysis.The empirical results show that:(1)a political association of private listed companies compared with no political association of private listed company to have a lower cost of debt financing.(2)the non-standard audit opinions issued by the debt financing cost compared with company standards issued by the audit opinion is higher.(3)has a political association of private listed company,the political association will weaken their comments by the auditor's report issued by type and the correlation of debt financing costs.In this paper,the research on the one hand,help regulators to further strengthen the regulation of political associated enterprises,perfect the governance mechanism of listed companies;Is advantageous to the government departments,on the other hand,to a certain extent,to perfect our market financial system,to improve the effectiveness of China's securities market information,real play to the usefulness of the auditor's report issued by the auditor opinion,establish its reference role in debt contracts,improve the efficiency of market allocation of social resources in our country.