The Research An The Effect Of External Audit Governance Based On Investor Protection

With the continuous development of national economy and the optimization of economic structure,the capital market,as an important part of the market economy,is moving towards multi level and multi direction.The sound and orderly development of the capital market has laid an important foundation for the rapid development of China's economy.And investors are the core of the capital market.How to effectively safeguard the fundamental interests of the majority of investors,is a matter of national economy and the people's livelihood.In recent years,in the rapid development of the capital market,there are a series of vicious actions that undermine the stability of the market,such as insider trading,manipulation of stock prices and disclosure of false information.These actions not only undermine the normal and orderly operation of China's capital market,but more importantly,bring irreparable losses to the majority of investors.How to effectively protect the interests of investors in China has become the focus of public concern.According to the research of agency theory,external audit,as an indispensable part of modern corporate governance mechanism,plays an important role in governance and supervision of reducing agency costs and alleviating conflicts of interest.And this kind of supervision and governance to a large extent,protects the investors to have the right to know,the right to participate and the right to make a profit,and ultimately plays a role in protecting the interests of investors.Based on empirical research,this paper explores the effect of external audit governance in the protection of investors from the perspective of investor protection.In this paper,the data of A-Share Listed Companies between 2012 and 2015 in Shanghai and Shenzhen Stock Exchange are chosen.The first kind of agency costs,the second kind of agency costs and corporate performance are selected as the alternative variables of investor protection,the type of audit opinion and audit quality as the alternative variables of external audit governance,at the same time,the company size,asset liability ratio,corporate growth as the control variables.Through using descriptive statistical analysis,correlation analysis and multiple regression analysis,the empirical study is conducted on the effect of external audit governance based on investor protection.The results show that the external audit governance has a significant negative correlation with the first kind of agency costs and the second kind of agency costs,and a significant positive correlation with corporate performance.The hypothesis is verified.External audit governance has played a positive role in investor protection.Finally,based on the results of empirical research,some countermeasures and suggestions from two aspects of improving the audit governance capacity of independent external auditors and improving the level of investor protection are put forward.These countermeasures and suggestions are: improving the occupation accomplishment and moral level of audit staff,strengthening the control of the accounting firm audit quality;strengthening the construction and improvement of the supervision mechanism;paying attention to equity incentive,improving operational efficiency;optimizing the ownership structure,and preventing the imbalance of equity.