Foreign Shareholdings,Auditor Selection And Audit Quality

With the continuous improvement of China's opening up to the outside world,it is more and more common for foreign investors to enter China for investment.In the negative list of access to foreign investment in 2018,the market access policy was fully relaxed in various industries,involving 22 major open measures such as finance and transportation.This shows that foreign investors will become an important part of the Chinese securities market.The role of a certified public accountant as an independent third party in the supervisory system is crucial.The financial information of a listed company can only be disclosed after being audited by a certified public accountant.Therefore,the audit of certified public accountants can improve the accuracy of the company's financial information and increase the trust of the expected users in financial information.However,because the interests drive audit failure cases,the shareholders are accusing the management problems and regulatory issues,but also point to the audit issues of listed companies.The quality of auditing has begun to enter people's attention and become a public concern.Research questions:Based on the existing factors affecting audit quality,this article,together with the factor of foreign ownership,explores the role of foreign shareholding in the supervision of listed companies,and whether it can improve the audit quality of listed companies.The relationship between theoretical analysis and empirical research.Research status:The literature has shown that the company's shareholding structure can affect the quality of auditing,and the shareholding structure is subdivided into executive shareholding,institutional investors holding shares,major shareholdings,etc.,but neglecting foreign shareholdings for auditing quality effect.Research ideas:This paper uses the data of listed companies in China from 2013 to 2017 as the research object,and conducts research design and empirical test on the relationship between foreign shareholding,auditor selection and audit quality,and draws relevant conclusions.The main test of this paper is to explore the relationship between foreign shareholding and audit quality,and to clarify the internal mechanism of foreign shareholdings affecting audit quality.Subsequently,the auditor was introduced to select this variable,and the relationship between auditor selection,foreign shareholding and audit quality was verified.The model was designed and related descriptive statistics,correlation analysis and regression analysis were carried out.The study found that the proportion of foreign shareholding is directly proportional to the audit quality of listed companies,indicating that foreign investors can form an effective supervisory role for listed companies and improve audit quality and information disclosure.The results of the selection of this variable by the auditors introduced on this basis indicate that the higher the proportion of foreign ownership,the more inclined to choose a large-scale accounting firm for auditing,and verify the intermediary effect of the auditor's choice,which is positive The relationship between foreign ownership holdings and audit quality.The innovation and application value of this paper:In exploring the factors affecting audit quality,the factor of foreign shareholding is rarely involved,and the auditor chooses this intermediary variable.This paper enriches the empirical research in the field of auditing in China.In practice,it also provides guiding significance for information disclosure and internal decision-making of listed companies.