A Study On The Effect Of Auditor Specialization Curbing Large Shareholder Expropriation Under Different Internal Quality

Curbing large shareholders expropriation is an important way to protect the legitimate rights of minority shareholders.Auditor acts as the external supervision mechanism to protect minority shareholders' legitimate property rights, depending on the quality of internal control.Auditor specialization directly affects the supervision effect of auditing.So studying what exactly auditor specialization could curb large shareholders expropriation and what the different supervision effects under different quality of internal control can help us deeply understand the mechanism of audit,and provide empirical evidence to strengthen the auditors professional capacity,and is also important for preventing large shareholders expropriation to protect minority shareholders'rights.By collecting data of Shanghai and Shenzhen A-share listed companies from 2012 to 2014, this paper studies the mechanism of how auditor specialization inhibit large shareholders expropriation,and further explores the inhibition effect by differentiating the internal control quality.The results show that:in non-governmental control companies,the more stronger auditor specialization is, the more able to effectively curb large shareholders expropriation,this shows government'intervention weakens the treatment effect of external audit;and in the better internal control quality companies by non-governmental control, auditor can effectively play expertise to inhibit the expropriation; but in the poor internal control quality companies, the inhibition effect of auditor specialization is not significant.This results indicate audit can add the effectiveness of internal control in the good internal control companies, and when there is a defect of internal control mechanisms will affect the role of audit play.Therefore,this paper propose improving the quality of internal control acts as the fundamental measures to curb the encroachment of large shareholders,on the basis to positively develop auditor specialization in order to better play the role of the audit supervision,simultaneously to perfect the government regulation,thus effectively protect the interests of minority shareholders rights.