The Impact Of Equity Concentration And Checks And Balances On Audit Quality

With the development of market economy,the organizational form of the company is constantly changing,and the equity is concentrated in the hands of the minority shareholders.The separation of ownership and management rights makes the principal-agent problem between the shareholders increasingly prominent.The conflict of interest between the majority shareholders and the minority shareholders makes the minority shareholders prefer to hire an independent third-party organization to carry out objective operation of the company in order to resist the infringement of the interests of the majority shareholders Evaluation,generating audit needs.From "Enron company","WorldCom company" to "Kangmei pharmaceutical","kangdexin","Zhangzidao" and other endless cases of audit failure in recent years,not only deliver negative information that is not conducive to the development of the audit industry,affect the efficient operation of the market economy,but also make the quality of the company's financial report more attention.At present,there are many articles about the influence factors of audit quality from the perspective of external audit market,but few from the perspective of corporate equity structure and considering the effect of firm size adjustment on audit quality.Based on the lack of supervision of large shareholders when the equity concentration is more likely to manipulate profits,the implementation of equity checks and balances can control the large shareholders' plunder of profits,ensure the consideration of high-quality audit demand and the consideration of the policy of "becoming bigger and stronger" emphasized by the government and the China Association of injection,this paper takes the data of all A-share listed companies in 2012-2018 as a sample,and takes the equity concentration as an example In this paper,the moderating effects of "equity concentration and checks and balances audit quality" and firm size under the second kind of agency problem are studied.The empirical results are as follows: Firstly,the negative correlation between ownership and audit quality;Secondly,the positive correlation between ownership balance and audit quality;Thirdly,the audit of large-scale firms alleviates the impact of ownership concentration on audit quality;Last but not least,the audit of large-scale firmspromotes the impact of ownership balance on audit quality.This paper considers the influence of internal equity structure of listed companies on audit quality more comprehensively,studies the relationship between equity concentration,equity balance and audit quality,introduces large-scale firms,and considers the positive influence of "internal and external cooperation" on audit quality,so as to provide a reference price for listed companies to optimize their equity structure and promote the development of audit market Value.Finally,according to the conclusion of this paper,some suggestions are put forward,such as developing diversified ownership structure,establishing the principal responsibility system of small and medium-sized shareholders,promoting small and medium-sized shareholders to actively participate in corporate governance,purifying audit space and optimizing audit market environment.