Going Concern Audit Opinion, Industry Resource Abundance And Debt Financing Costs

In recent years,the state has continued to increase efforts to solve difficult and expensive financing issues of enterprises through various channels and methods.When Chinese enterprises conduct financing,they generally prefer to use debt to ra ise funds,so the related problems shown by debt financing costs are an important factor affecting the development of enterprises.The formation of debt financing costs is the result of a game between the borrower and the lender in the financing market.Creditors will inevitably refer to the information of the enterprise when lending,but due to the asymmetric information,the outside world cannot obtain sufficient and complete information.At this time,the audit opinion is regarded as fair and objective information,and is used by creditors as an important reference for decision-making.Among them,whether the enterprise can continue to operate is the information that creditors focus on.In addition,enterprises have different financing environments due to different industry environments.Different industry environments will bring different credit risks to enterprises and affect the recovery time and integrity of creditor funds.This paper explores the logical relationship between the audit opinions of cont inuing operations,industry resource abundance,and debt financing costs based on the relevant research results,based on debt contract theory,signal transmission theory,and financing constraint theory.The empirical test is under different industry reso urce abundances.,Continuing Opinions on the Adjustment of Corporate Debt Financing Costs.This article takes China's A-share non-financial listed companies from 2011 to 2018 as samples,and uses stata15.0 for data processing.The following conclusions are reached:(1)when the company was issued with a continuing operation audit opinion last year,it will increase the company's debt financing cost for the next year;(2)the lower the industry resource abundance,the higher the listed company's debt financing cost;3)When the abundance of industry resources is low and the instability is high,creditors will increase the sensitivity to the audit opinions of continuing operations,that is,the relationship between the abundance of industry resources to audit opinions of continuing operations and the cost of debt financing With regulating effect.Based on the empirical results,this article puts forward relevant recommendations: for listed companies,they must maintain their ability to continue operations,pay attention to their own development and information disclosure;for certified public accountants,improve the auditor's industry expertise and practice capabilities;and for creditors,pay attention to audits issued by listed companies Opinions and the ind ustry environment where they are located to enhance professional knowledge;on the government side,a more complete financing system has been established to optimize the industry environment and form a complete supervision system and corresponding laws and regulations.