Study On The Relationship Among The Government Audit,Corporate Governance And The State-owned Enterprises Value

The government audit is an important tool for safeguarding the stability and safety of the country’s economy,implementing various policies and measures,and ensuring the orderly development of the society.It is also a significant participant in the governance of state-owned enterprises.Auditing state-owned enterprises constitutes an important part of government audit.The development of state-owned enterprises is of great significance for promoting economic development and maintaining economic stability,because the state-owned economy is the pillar of china’s national economy.The government has the responsibility to promote operation,supervision,inspection and information announcement for state-owned enterprises,because it bears the public fiduciary duties.Government audit has the essential characteristics of general audit,which can alleviate the influence of principal-agent and asymmetric information,and extend other functions.The ultimate goal of government audit is the safety,maintenance and appreciation of the state-owned assets,which is the result of the public entrusted economic responsibility.Corporate value is also the ultimate result of business operations.Corporate governance mechanism is a necessary part of modern enterprise management.High-level corporate governance can effectively reduce the adverse effects of the agency relationship and asymmetric information.However,there are various problems in the governance mechanism of state-owned enterprises,which is detrimental to the healthy development of enterprises and the promotion of their value.In recent years,the complete and effective operation of the corporate governance structure has become an important goal of government audit.Government audit is the "immune system" of the national economy.It has the function of revealing,preventing and resisting,as well as supervising,guaranteeing,promoting.Does government audit play a governance function to develop state-owned enterprises? What is the relationship between government audit,corporate governance and the value of state-owned enterprises? These are the major topics of this essay.The paper is based on the public accountability theory,principal-agent theory and asymmetric information theory.The paper describes the functions,roles,and objectives of government audit and analyzes the problems in the governance mechanism of state-owned enterprises.Then,the paper analyzes how government audit affect the governance mechanism and value of state-owned listed companies,as well as the relationship among them.Based on the theoretical analysis,this study establishes four assumptions on the relationship between government audit,corporate governance,and the value of state-owned enterprises.Based on the audit results announcements from 2010 to 2016,this paper makes an empirical study with the data of listed companies controlled by central state-owned enterprises and obtains the research results.First,government audit can effectively promote the value of state-owned enterprises.The promotion of internal value emerged after one year,and the promotion of external value emerged after two years.Then,it also can effectively improve corporate governance.This function has a positive impact in the current year,one year,and two years later.Next,high-level corporate governance plays an important role in improving the value of state-owned enterprises.In the end,Government audit intervention and corporate governance have complementary effects on the value of state-owned enterprises.These two variables together enhance the value of state-owned enterprises.However,this promotion effect is limited by time and weakens in the third year.The study obtains some policy implications.First,the National Audit Office should increase the frequency of audit and expand the scale.Second,the government audit should continue to focus on the integrity and operation of the governance structure of state-owned listed companies.Third,the government should transform the government’s audit function and develop performance audit.Fourth,the National Audit Office should reasonably arrange the audit time according to the periodicity and timeliness of the government audit.Fifth,the National Audit Office needs to improve the level and quality of government audit.The innovation point of this paper is to incorporate the governance mechanism of state-owned enterprises into the scope of research.Research proves the relationship between government audit and state-owned enterprise governance,and proves the role of government audit intervention and corporate governance on the value of state-owned enterprises.The article enriches the theory that government audit affects state-owned enterprises,and provides some policy inspirations for improving the level of government audit.