Research On The Impact Of Negative Network Public Opinion On The Audit Opinion Of Pharmaceutical Industry

The emergence of the Internet has brought about a change in the traditional way of information transmission,and social networking,e-mail,websites,wikis and other major network technology are increasingly widely used in corporate management and personnel management.Investors express opinions on the behavior of listed companies and their stakeholders through the Internet platform.And the opinions quickly develop into the network public opinion because of the network platform's immediacy,convenience,freedom and other characteristics.The spread of negative public opinion about listed companies attracts close attention and intense discussion,which also makes the accounting firms to provide audit services for listed companies are forced to accept the review.And the CPA must speak and act cautiously to reduce audit failure risk.Currently,the research on the network public opinion is limited to the capital market and corporate governance,ignoring the impact of the CPA and its accounting firm.In view of this,this article selects 2009-2015 China's A shares of pharmaceutical listed companies as samples,through theoretical analysis and Empirical Study on the relationship between the negative network public opinion and the audit opinion decision.The empirical study finds that:(1)Negative network public opinion can significantly improve the probability of CPA to issue non-standard audit opinion;(2)Negative network public opinion can significantly improve the probability of CPA to improve the audit opinion for the next year;(3)The negative network public opinion plays a greater role in the big eight accounting firms with higher reputation,which shows that the reputation mechanism does play the role during the spread of negative public opinion;(4)The negative network public opinion plays a greater role in the medical companies with higher public concern,indicating that public concern has leverage effect;(5)Negative network public opinion plays a greater role in the pharmaceutical companies with low information transparency,wthich indicates that the negative network public opinion has the function of improving the information asymmetry.The empirical results show that:(1)Negative network public opinion has the effect of audit governance;(2)Negative network public opinion can play the role of corporate governance through the audit "path".This paper has an important theoretical and practical significance for understanding the negative network public opinion to effectively improve the audit opinion and the audit quality.Firstly,this paper expands the scope of the application of negative public opinion supervision,and confirms the universality of the role of negative public opinion's governance.Secondly,this paper introduces the "network public opinion" as the third-party perspective,which breaks the traditional pattern of the research on audit opinion decision,and provides a new opportunity for the improvement of the research on audit opinion decision.