A Study On The Effect Of Investor Protection On Auditor's Performance Mechanism

Investors are an important participant in the capital market.The protection of investors' rights and interests is the guarantee of the healthy development of capital market.However,from the overseas Enron incident to the domestic Yinguangxia event,these painful lessons have repeatedly told us that small and medium-sized investors who are in a weak position in the capital market,their interests are vulnerable to all kinds of violations of the damage,and these events are another important role in the capital market-independent auditors have great Relationship,then how to protect the independent audit to play the role of protecting the interests of small investors?Based on the analysis of the tripartite contract theory,we use the empirical research method to explore the role of the auditor 's two major compliance mechanisms on investor protection from the perspective of earnings management and empirical research in this paper.And then we examine the regulatory effects of different systems and market conditions on the relationship between the auditor's compliance mechanism and investor protection.It is found that the auditor's material capital and reputation capital are significantly negatively correlated with the degree of earnings management.This means that the two compliance mechanisms based on the performance capital have played a role in guaranteeing the audit quality,restraining earnings management,reducing information asymmetry,and protecting small and medium investors And then,through the group inspection found that auditor performance capital only play a role in suppressing the higher level of earnings management,while the lower level of earnings management inhibition has been limited.Furthermore,through the regression model,it is found that the legal environment has a certain adjustment effect on the relationship between the performance capital and the earnings management.That is to say,there is a significant difference in the degree of restraint between the auditor and the auditor in the different legal environment,Strict legal environment is more able to strengthen the auditor compliance mechanism on the degree of inhibition of earnings management,the protection of investors.Finally,based on the research of this paper,it provides relevant reference suggestions for the construction of the auditor's supervision mechanism and the construction of the investor legal protection system.