Research On Government Audit's Impact On Listed Central Enterprise Performance

The "Deepening the Party and State Institutional Reform Plan" adopted by the Third Plenary Session of the 19 th CPC Central Committee,which assigns the responsibilities of the key State-owned enterprise supervisory committees to National Audit Office,aims to optimize the responsibilities of National Audit Office and build a unified and efficient audit system.This transformational initiative profoundly reveals the coupling of the supervisory board of state-owned enterprises and the government audit,indicating that they are likely to build synergy mechanisms and form unified accountability.In the past,the board of supervisors of state-owned enterprises was often criticized for their weak performance.In addition,the lack of accountability is another important reason.The construction of a unified and efficient supervision system for government audit is inseparable from the integration of other supervisory mechanisms.Based on the audit synergy theory,in the state-owned enterprise governance system,the government audit and the board of supervisors system should cooperate with each other to promote the improvement of corporate governance.Based on the basic theory of entrusted generation theory,government auditing state governance theory and auditing synergy theory,this paper analyzes the relationship between corporate performance,government audit and the characteristics of the board of supervisors in state-owned enterprise governance system.This paper selects the listed companies controlled by central enterprises from 2012 to 2017 as a sample to test the impact of government audits on enterprise performance,and the impact of the board of supervisors' characteristics on enterprise performance,including the size of the board of supervisors,the proportion of employee supervisors,the professionalism of the board of supervisors,the frequency of the board of supervisors and the proportion of payrolls of the board of supervisors.In addition,this paper will carry in-depth study on the regulating role of the characteristics of the board of supervisors in the process of government audit affecting the performance of state-owned enterprises.The results show that:(1)in the current period of the audit announcement,government audit has a significant role in promoting the performance of state-owned enterprises.The government audit that lags behind the first period has no significant effect on the performance of state-owned enterprises.(2)among the state-owned enterprises,the size of the board of supervisors,the professionalism of the board of supervisors,and the frequency of the board of supervisors have a significant positive impact on the performance of the company.The proportion of the board of supervisors has a significant negative impact on the performance of the company.The influence of the proportion of employee supervisors on the performance of the company is not significant.(3)The characteristics of some supervisory committees have significant positive adjustment effects in the process of government auditing influencing the performance of state-owned enterprises,including the professionalism of the board of supervisors and the frequency of meetings of the board of supervisors.The adjustment of the size of the board of supervisors,the proportion of employee supervisors,and the proportion of payrolls of the board of supervisors is not significant.The main contribution of this paper is to explore the internal mechanism of government audit and supervisory committee to promote state-owned enterprise governance and provides theoretical support for the state-owned enterprise supervisory board and government audit to build a coordinated supervision mechanism.On the other hand,this paper provides a new direction for full audit coverage and the reform of the board of supervisors system in state-owned enterprises.In view of the politic recommendations for the reform of the state-owned enterprise governance system in the future,this paper believes that the government auditing and supervision committee of state-owned enterprises should be constructed to supervise the synergy system,optimize the effectiveness of government audits,and deepen the reform of the state-owned enterprise supervisory committee.Then it will promote the realization of government auditing efficiency and member specialization of the board of supervisors and normalization of coordination mechanisms.