Research On The Influence Of Audit Opinion On Earnings Management And Financing Constraints

Information Asymmetry is the main factor of financing constraints.Because in the real capital market,external funds and internal funds are not fully mutual flow that results in the cost of external financing is often greater than the internal financing costs,so the financing constraints of enterprises have been produced.The Socialist Capital Market of our country is still in the primary stage,so that economic,cultural,social and other factors need for further development.Thus the problem of information asymmetry between owners and operators is faced with more serious problem of financing constraints.Besides,in listed companies of China,Earnings management is often used for packing towards its IPO,to avoid delisting,allotment of shares,and seasoned equity offering.Research shows that the "packaging" behavior of earnings management will lead to the decline of the quality of accounting information,cause the rise of corporate financing costs,so that the problem of corporate finance is difficult to further increase.In addition,the external audit is an important power ofsupervision enterprise financial information quality.And the audit opinion can not only reflect the financial situation,operating status and cash flow of the enterprise,but also can supervise and control the earnings management,so that it can alleviate the financing constraints of enterprises.Based on these three aspects,this paper analyzes how earnings management affects the financing constraints of enterprises.And audit opinion as an authenticator,toresearch the influence of audit opinion on earnings management and financing constraints.In addition,this paper makes a further refinement of earnings management from three different perspectives,the degree,the direction and the attribute.To research the connection of these three factors.This paper based on the share of A listed companies from 2010 to 2013 as the research sample,to test the impact of earnings management and audit opinion on financing constraints of companies by establishing cash flow sensitivity model through different aspects of Earnings management.The research shows that,(1)Enterprise's earnings management behavior will lead to greater financing constraints,and the influence of different earnings management behavior on financing constraints will be different.From the point of view of degree,the greater the degree of earnings management,the stronger the financing constraints of enterprises.From the point of view of direction,upward earnings management will lead to more serious financing problems.From the point of view of the attribute,opportunistic earnings management does not restrict the financing of enterprises.(2)Audit opinion is helpful to alleviate the financing constraints caused by earnings management.When the enterprise carries on the large degree of earnings management and upward earnings management,and obtains the standard opinion,its financing constraints will be eased.