The Impact Of Internal Corporate Governance On Auditor Choice With The Regulation Of Marketization Index

As China's secerities market develops continuously,auditors play an increasingly important role in capital market.The external audit,an inportant part of the modern corporate governance mechanism,has been unanimously approved by shareholders and creditors for its supervisory role and safeguard role.Statutory audits are only beneficial if the appropriate audit quality is both provided and perceived by the users of audited financial statements.On the one hand,Big 10 audit firms are colmonly viewed as producing high quality audits.On the other hand,regulators conplain about the high market sliare of Big 10 audit firms.In this context,it is of interest to examine the drivers of a Big 4 audit firm selectioo Despite extensive prior research,tliere is still a lack of findings form Continental European countries and on the irrpact of corporate governance on auditor choice.This paper on hand is intended to fill the related research gap.Thus,our study identifies variables that determine the auditor choice of Chinese market.Based on this,the core research question of this paper is:Does corporate governance have an important impact on auditor selection in China's market environment?In the past,most of the research focused on the US capital market,and the corporate governance structure of the United States has a significant difference with China.Therefore,it has great research value for the selection of auditors in the field of corporate governance in China's capital narket.Different from previous research,this paper uses the financial data of China A-share listed companies and the conpany's basic information from 2008 to 2017,and uses the iterative maximum likelihood estimation to conduct a regression test on auditor selection from 2008 to 2017.Corporate governance has an impact on auditor selection.The conclusion of this paper is that the correlation between corporate governance and auditing is very significant Specifically,the number of annual meetings of the Board of Supervisors and the size of the Board of Supervisors are positively related to the enployment of the Big Four accounting firm.However,the management's equity incentive ratio and institutional investor share ratio are negatively correlated with the choice of the four audit institutions.It is worth noting that the proportion of female supervisory board members also significantly affects the choice of auditors.The innovation lies in enriching the research content of the corporate governance model of the listed company and the mechanism of the audit market,and revealing the neglected factors in the securities research field in China,such as the proportion of female members of the board of supervisors,the proportion of incentives for management interests,and the proportion of institutional investors.Corporate governance variables.The application value of this paper is 1 This study reveals the relationshp between corporate governance quality and high-quality audit requirements;2 provides evidence for whether the gender structure in China's context will affect the company's governance quality;3 is the CSRC and national economic trade.Members provided guidelines for improving the "Guidelines for Corporate Governance of Listed Companies";4 provided reliable data for institutional investors on the impact of external audits.