Internal Control,Audit Opinion And Stock Price Crash Risk

The stock price crash will cause serious losses to investors,which is not conducive to the good operation of the capital market Compared with Western countries,the Chinese capital market is still relatively imperfect,and the stock price crash is more frequent.Therefore,the study of the factors affecting the stock price collapse risk and the prevention of the stock price collapse risk are,all crucial.In recent years,the majority of scholars began to study the risk of stock price collapse,mainly from the enterprise itself and manager behavior,Accounting information quality,external market research,the literature has related to the impact of internal control on Ihe stock price collapse risk,or Audit opinion The impact on the stock price crash risk,but the article that comprehensively considers internal control and Audit opinion on the risk of stock price collapse,especially the article considering the role of Audit opinion mediation,has not yet been seen.The literature has shown that internal control can effectively suppress the short-sighted behavior of management and play the role of internal supervision,thus reducing the risk of stock price collapse.The Audit opinion is issued after the Audit of the financial statements of the enterprise.It is issued by an independent third party and has certain credibility.At the same time,it can be obtained by the users of the financial statements to evaluate the internal control of the company.Therefore,this paper adds Audit opinion as a mediator variable to further study the mediating role of Audit opinion in internal control over stock price collapse risk.Based on the review of internal control,Audit opinion,stock price crash risk and two-two cross-referenced literature,this paper based on information asymmetry theory,principal-agent theory,Audit risk theory,signal transmission theory,internal control,Audit opinion and stock price collapse risk The relationship between the three is theoRetically analyzed and hypotheses are proposed.This paper selects the A-share listed companies in Shanghai and Shenzhen stock markets from 2001 to 2016 as sample observations,and removes the reLevant data to empirically test the relationship between internal control,Audit opinions and stock price collapse risks.The empirical results show that:1.Under the same conditions,the higher the quality of internal control,the lower the risk of stock price collapse.2.Under the same conditions,the better the internal control quality,the lower the probability that the enterprise will issue a non-standard Audit opinion.3.Audit opinion as a mediator variable plays a mediating role in the impact of internal control on stock price collapse risk.And in the replacement of the stock price collapse risk measurement indicators,the model again with the fixed effect of the empirical regression,as the article's robustness test,the results are the same as above.Finally,the article summarizes the empirical results.Based on the internal management,Accounting firms and regulatory agencies,the paper proposes to improve the internal control of enterprises,improve the reliability of Audit opinions and promote the stable development of capital markets.Practical and reLevant recommendations.In addition,this paper also considers the shortcomings in the research,laying the foundation for the subsequent research.