A Study On The Impact Of The Margin Trading On Auditor Behavior

As the new financial instruments,economic consequences of securities margin trading are the emphasis of academic circles and practical fields.Margin trading was dredges to be thought that margin trading can make market steadier and complete price discovery mechanism.Therefore the discussion of margin trading is more about efficiency of financial market to verify marge trading whether satisfies China Securities Regulatory Commission's expectation or not.Market is an entirety,when marge trading influence the financial market,the real economy must be influenced,too.There are a few papers talking about the influence that marge trading has on the real economy.However,as intermediary of market information,what difference that behavior of auditors will have is still unknown after marge trading dredging.As a doorman of market,the auditor can provide high quality auditing to reduce the degree of information asymmetry among the stakeholders and promote operation of capital market.Therefore talking about the influence that marge trading has on behavior of auditor has important meaning.Based on natural experiment research opportunity that securities market in china has made,by using data of A-share companies during 2004 to 2015 and adopting double difference model this text tests what changes the behavior of auditors will have after quoted companies become the underlying of margin trading from three angles,audit fee,audit delay and audit opinion.And then this text analyses the influence that company's internal governance and external market environment has on the relationship between marge trading and audit fee.The result of research shows that the auditor will increase audit fee to reduce the latent litigation risk after enterprises entering the scope of margin trading.Then,this text verifies marge trading will lead auditors spending more time and publishing more non-standard audit opinions.The result of research indicates that being driven by the increasing potential litigation risk that margin trading result in,behavior of auditors will be more cautious.To avoid litigation risk that result from material misstatement,the auditor will spend more time and publish more robust audit opinions.Finally,result of cross-multiplication show that the influence that margintrading has on audit fee is more remarkable in company with poor internal governance structure or in lower external marketization process.