Research On The Impact Of Audit Quality On The Financing Cost Of Listed Companies

In the central economic work conference held at the end of 2018,the policy keynote for the next year was clearly given.China still needs to"solve the problem of difficult and expensive financing for private enterprises and small and micro enterprises".In combination with the current financial "deleveraging" and the increasing regulatory means,the financing difficulty and high financing cost of China’s listed companies are becoming more and more serious.In addition,the fierce market competition,resulting in unfair competition and scandals,but also exacerbated the market information asymmetry,the joint enterprise itself-in the operation and management of the loopholes,to a certain extent,reduce the market participants trust in the enterprise.The reduction of participants’ trust is reflected in the high external financing cost,which will affect the reasonable allocation of enterprise resources and hinder the benign and steady development of enterprises.High-quality audit can provide strong guarantee for the quality of information,reduce the information asymmetry in the market and increase the transparency of the market to a certain extent.Therefore,the improvement of audit quality is an effective way to reduce the external financing cost of listed companies.Based on the above,this paper chooses to study the influence of audit quality on financing cost,introduces the moderator variable of equity concentration,and studies the influence of the interaction between equity concentration and audit quality on external financing cost.Overall writing idea is first of all,the audit quality,equity capital cost and cost of equity financing related literature and research the theoretical foundation and basis of A systematic review and comb,on the basis of the collected the a-share listed companies in 2012-2017 data,draw lessons from existing literature,use surplus quality instead of audit quality,using multiple regression method empirically the impact on equity capital cost and the cost of debt financing,after the ownership concentration is also included in the study,test its impact on the existence.Article through empirical analysis found that improve the quality of audit,can not only control the company’s equity capital cost,also can effectively reduce the cost of debt financing,equity will be affected by the impact of ownership concentration,but audit quality and the relationship between debt financing costs will not be affected by the regulation of ownership concentration.Based on this,the paper thinks that the feasible ways for enterprises to reduce external financing cost include:improving enterprises’ understanding of audit quality;Improve the incentive mechanism of enterprises;Establishing effective supervision mechanism of enterprises;Widen financing channel,reduce financing cost.