Environmental Uncertainty,Auditor Choice And Corporation Value

To achieve the maximization of corporate value is the most basic goal of corporate financial management.The research on the influencing factors of corporate value is also the research focus of current theoretical community.In the face of huge market competition and many difficulties in production and operation,how to enhance the value of the enterprise in an uncertain environment is imminent.The independent auditing,which is crucial for the corporate governance mechanism,can play a role in governing the company to a certain extent.And how can the choice of different quality auditors have an impact on the enterprise value? This paper takes the annual financial data of A-share listed companies in Shanghai and Shenzhen stock exchange from 2007 to 2016 as the research sample,trying to explore the relationship between environmental uncertainty,auditor choice and enterprise value.The results show that:(1)Choosing a high quality auditor is conducive to enhancing the enterprise value;(2)The effect of high-quality auditors on enhancing enterprise value is not obvious in the two types of state-owned and non-state-owned enterprises;(3)Environmental uncertainty inhibits the effect of high-quality auditors in enhancing corporate value;(4)The effect of environmental uncertainty inhibiting high-quality auditors from improving corporate value is even more pronounced in state-owned enterprises.This paper,based on the ranking of the top 100 firms released by the Chinese Institute of Certified Public Accountants,represents the quality of auditors.It first explores the relationship between auditor choice and firm value in the context of environmental uncertainty.This paper considers the influence of environmental uncertainty on the selection of auditors,expands the research perspective on the relationship between auditor selection and firm value,and enriches the existing literature on the factors that affect the firm's value.