Research On The Path Of Government Audit Affecting The Performance Of Listed Companies Controlled By Central SOEs

The goal of the government audit is to supervise the performance of public financial responsibility and serve the country's governance,and to study its governance function is a hot topic in recent years.State-owned enterprise auditing is one of the important contents of government audit.The Guidance Opinions on Deepening the Reform of State-owned Enterprises issued in 2015 emphasizes that during the reform of state-owned enterprises,internal and external supervision mechanisms should be established,and the government auditing system and continuous auditing system should be improved.At the 19th Congress held in October 2017,President Xi pointed out in his report that it is necessary to improve various types of state-owned asset management systems,promote the maintenance and appreciation of state-owned assets,and promote state-owned capital to become stronger,bigger,and better,effectively preventing the loss of state-owned assets.State-owned enterprises audit an external supervision mechanism and study its internal management of enterprises,the preservation and appreciation of state-owned assets,and the impact of the performance of state-owned enterprises as a new topic.Based on the theory of public fiduciary economic responsibility,the theory of government auditing function,and corporate governance theory,this paper analyzes the impact of government audit on corporate performance in the listed companies of the central SOEs.During the analysis of its mechanism,it finds that the quality of internal control has played a role.Large path conduction.In theory,government audit can improve corporate performance by improving the quality of internal control,that is,the quality of internal control is an intermediary variable.In the empirical study,a multivariate regression analysis method was used to draw on the mediation test method proposed by Wen Zhonglin et al.(2004)and widely accepted by the academic community.The research in this paper is mainly divided into three steps:The first step is to test the total effect of government auditing on improving corporate performance.The empirical results show that the total effect is significant;the second step is to test the effect of government audit on the quality of internal control of mediation variables.The empirical results show that the impact is significantly positively correlated;the third step is to test the mediating effect of internal control quality on government auditing and improving corporate performance.The empirical results show that there is a complete mediating effect,that is,the main path for government audits to affect the performance of central SOEs controlling listed companies is to improve the quality of internal control.The empirical research verifies the hypothesis of this paper.The results show that the government audit of the central SOEs listed companies can significantly improve their corporate performance and the quality of their internal controls.Moreover,the quality of internal control is the main conduction path for government audits to enhance corporate performance.The government audit is a central SOE.An important mechanism for governance.Finally,this article has four suggestions:(1)Strengthen audit supervision,improve continuous auditing system and audit announcement system;(2)Attach importance to audit rectification,increase accountability of audit result announcement;(3)Improve central state-owned enterprises Internal control,improve the internal control supervision system and evaluation system;(4)strengthen multi-sectoral collaboration and play an external governance mechanism of central enterprises.