Market Reaction Of The Government Audit Announcement

Government auditing is an important part of national governance.Auditing announcements are an important path for government auditing to improve national governance.The audit result announcement refers to the public report made by the auditing agency to the whole society on the results of a certain or a certain type of audit or audit investigation in accordance with the law.The implementation of the audit results announcement system is of great significance for improving the transparency of government and other public sector economic activities,expanding citizens' right to know,promoting citizens' active participation in political management activities,improving audit quality,and promoting audit work at a higher level to serve national governance.On December 15,2013,the official website of the National Audit Office released the first audit result announcement,which opened the prelude to the announcement system of China's audit results.The audit institutions gradually increased the audit announcement.The strength of the announcement,the number of announcements,and the types of announcements have become increasingly abundant,and the announcement of the announcement of the audit results of the financial revenues and expenditures of the central enterprise group has been intensified.From the announcement of the results of the audit of the financial revenues and expenditures of six central enterprise groups in 2010,to 2018 The announcement of the audit results of the financial receipts and expenditures of 35 central enterprise groups reflects the regulatory dynamics of the auditing agencies and the concern about the preservation and appreciation of state-owned assets.As of December 31,2018,the Audit Commission website announced a total of 137 financial receipts of the Central Enterprise Group.Announcement of audit results,accounting for 40% of the total number of audited announcements,and on June 20,2018,the Audit Commission announced 35 audit results of the audit results of the central government's financial revenue and expenditure,reflecting the monitoring focus and supervision of the auditing agencies' dynamic.In the past,the research on government audit announcements mostly focused on the government audit results announcement system itself,and explored the rationality of the existence of the system,the theoretical basis,the risk of government audit announcements,and the problems in the format and content of government audit announcements.Normative research,less empirical research.On the basis of reviewing the existing literatures at home and abroad,based on the principal-agent theory,information asymmetry theory and effective market theory,this paper takes 137 copies of the audit results of the financial revenues and expenditures of the Central Enterprise Group from 2010 to 2018 as the research object.As a research sample,listed companies use the event research method to measure the market reaction of government audit announcements by the degree of cumulative abnormal return rate deviating from 0,and carry out regression analysis from the announcement content and announcement frequency,and further analyze their cumulative excess return rate influences.The research results of this paper show that the government audit announcement does have information content.The cumulative abnormal return rate is significantly negative before and after the government audit announcement date,and the central enterprise group involved in illegal transfer processing has a negative reaction to the listed company.The listed companies that have been repeatedly announced by the Central Enterprise Group have once again announced that the market reaction of the negative year is more intense.It can be seen that the Audit Commission's audit results announcement contains information that was not available in the previous capital market,which reduced information asymmetry to a certain extent and eased agency conflict and adverse selection.The research in this paper will help to test the implementation results of the audit results announcement system,verify the value of government audit announcements,and explore ways and means for government audit to better supervise state-controlled listed companies,in order to further improve the government audit results announcement system.