The Influence Of Government Audit On The Deleveraging Of State-owned Enterprises

During the two sessions of 2017,the representatives of the participants repeatedly suggested that it was the most important to realize deleveraging of the state-owned enterprises.The nineteen major conferences of the country also emphasized the importance of deepening the "supply side structural reform" in the new era.It is proposed that "three goes,one down and one subsidy" is the only way to achieve industrial optimization and upgrading.Recently,how to make government audit play an important role in this reform has been an important research issue of the audit institutions.So,what is the current situation of debt financing for state-owned enterprises? How does the audit institution pay attention to the problem of deleveraging of state-owned enterprises? What is the effect of government audit on the effect of leveraging on state-owned enterprises? If government audit can improve the deleveraging effect of state-owned enterprises,how can government audit institutions improve audit quality and better serve state-owned enterprises' deleveraging? What kind of effort should be made in the process of deleveraging by state-owned enterprises? All these questions need to be answered urgently.Based on the capital structure theory,ERG theory and good governance theory,this paper expounds the reasons for the high leverage of state-owned enterprises,and why should government auditing to serve state-owned enterprises' deleveraging.Through literature method,empirical analysis and so forth,the paper researches the status quo of government audit and state-owned enterprises' deleveraging,and evaluate its effect from the change of debt,improvement degree of investment efficiency and development ability to analyze the impact of government audit to state owned enterprises' deleveraging effect.The empirical results show that: Firstly,government audit is beneficial to restraining and reducing the leverage ratio of state-owned enterprises in the current period of intervention.Compared with the policy background that does not attach importance to enterprise deleveraging,when the government pay attention to the enterprises' deleveraging,such restraining and reducing effect is more significant.However,the action mechanism of government audit on the debt growth rate of state-owned enterprises is lack of dynamic continuity.Secondly,the effect of government audit on investment efficiency of state-owned enterprises is lagging,in the two years after the intervention of government audit on corporate investment returns would be inhibited: The inhibition is probably because the government audit announcement revealed problems which brought the negative effects: It may be because the state-owned enterprises after the audit optimize the investment structure at the expense of short-term gains.In further research,it is found that the internal control of state-owned enterprises has a moderating effect on the above negative effects.Therefore,state-owned enterprises should attach importance to and strengthen the construction of internal control.Thirdly,government audit is conducive to improving the development capacity of state-owned enterprises in the short term,and in the context of the government's emphasis on enterprises' deleverage,such effect is more obvious.Finally,as a whole,the effect of government audit on the deleveraging of state-owned enterprises is lack of dynamic continuity.The contribution of this paper includes the following two aspects.On the one hand,for the debt ratio of enterprises,it is not the lower the better.During the implementation of deleveraging policy,auditors and the clients are prone to fall into the misunderstanding of excessive debt rate and ignore the long-term development capability of enterprises.In this paper,not limited to the change of corporate liabilities,it explores the measure of deleveraging effect from three aspects: the change of debt,the investment efficiency and the development capacity.Secondly,at present,there are few studies on the influence of government audit on the deleveraging of state-owned enterprises,but the government audit is the special external supervision of the state-owned enterprises,which is distinguished from the non-state-owned enterprises.Its influence on the deleveraging of state-owned enterprises is inevitable.This paper creates the new perspective of the study on the deleveraging of state-owned enterprises.By analyzing the role of government audit in the deleveraging of state-owned enterprises,we put forward some suggestions for improving government audit process and improving government audit announcements,so as to better serve the structural reform of supply side.