The Role Of Government Audit In The Impact Of Local Government Competition On Debt Risk

Decisive victory in building a well-off society in an all-round way is not only related to the development speed of China's economic level,but also to the development quality of China's economic level.It is the "the Three Critical Battles" to prevent and resolve the major risks,conduct targeted poverty reduction and control pollution.It is the long-term maintenance of China's economy since the 19 th CPC National Congress.The main points of health development work.Local debt risk is one of the major risks that threaten China's economic and financial security.How to improve governance is an important issue that we need to focus on.Based on the theory of information asymmetry,the theory of tournaments and the theory of public fiduciary responsibility,this paper constructs the research framework of local government competition,government audit and local debt risk.In the context of China's system,it focuses on the local government competition for debt risk.The mode of influence and impact effects,as well as the role of government auditing in the relationship between the two.Through theoretical analysis,it is found that the soft budget constraint,over-investment and opportunistic behavior tendency are the three main factors that local government competition leads to local debt risk.As an effective tool of national governance,government audit can play a role in suppressing local government competition and local debt risk by the role of revealing the drawbacks through examination and evaluation,correcting accountability through processing and rectification,improving prevention through providing suggestions,and public coordinating through the public audit results.In the empirical part,this paper selects the data of 31 provinces,autonomous regions and municipalities in China from 2007 to 2016 as samples,and establishes empirical models of local government competition and local debt risk and local government competition,government audit and local debt risk,respectively.Statistics,correlation analysis and multiple linear regression analysis found that local government competition has a significant positive impact on debt risk.Government audit can negatively regulate the relationship between the former two,and the government audit reveals the drawbacks and improvements.Prevention is particularly effective,and accountability is not significant.In further analysis,it is found that the role of local government competition in debt risk and the negative role of auditing in the negative adjustment are lagging behind,and there is no lag in correcting accountability and improving prevention.Based on the above analysis,this paper proposes the government's policy recommendations to curb local government competition and manage local debt risks.It believes that it should restrict the local government's scope of authority,dynamically monitor local debt risks,fully implement audit coverage and promote government audit results,in order to maintain the stable and healthy development of the national economy.