Shareholder Heterogeneity,Marketization Process And High-Quality External Audit Requirements

In today's society,auditing plays an important supervisory role in the healthy and orderly development of the economy.The quality of auditing also affects the national economy and the people's livelihood.At the same time,with the continuous improvement of markets and laws,the quality of auditing requirements of enterprises has become higher and higher.Especially in the context of "Internet +" and the blockchain,auditing has been given a new meaning,not only to obtain relevant financial information from traditional financial statements,but also to extract data useful for auditing from big data Information and auditing requirements have been greatly improved,which has also given us a new understanding of auditing.Independent external audit,as an important monitoring measure,can reduce the information asymmetry between shareholders and executives,and play a role in monitoring the self-interest behavior of executives.Therefore,companies will choose different external audits according to their own actual conditions Institutions audit them,hoping to improve the information environment and reduce agency costs.As a result,the level of corporate external audit requirements also changes with their own needs.For more than 40 years since the reform and opening up,China 's economy has developed rapidly,the socialist market economic system has gradually improved,and relevant legal systems are becoming more and more complete.These achievements are inseparable from China 's relevant policies for the introduction of foreign shareholders.The phenomenon of stocks is quite common.Their appearance has promoted changes in the corporate governance structure,affected the company's performance,and made a significant contribution to improving the company's information environment.In addition,the separation of ownership and operating rights makes senior management personnel a key figure in the enterprise.As the operator of the enterprise,executives have the power to determine the choice of the accounting firm,and can significantly affect the company's auditing costs.Auditing needs are more sensitive to changes.Executive shareholding,as an incentive method,guides executive behavior.Equity incentives can enhance executive bargaining power,directly reduce audit costs,and promote executives' improvement by generating a convergence of benefits.Internal control efficiency reduces corporate risks and audit costs.This article selected 2007-2017 A-share listed companies in Shanghai and Shenzhen as research samples,using empirical analysis methods to analyze the impact offoreign-owned and executive-owned shares on high-quality external audit demand,and the process of joining the market The following impact studies found the following conclusions:(1)the proportion of foreign ownership is positively related to the demand for high-quality external audit;(2)the proportion of senior management's share is negatively related to the demand for high-quality external audit;(3)the higher the marketization process,the weaker the positive correlation between the shareholding ratio of foreign capital and high-quality external audit requirements.At the same time,it can promote the negative correlation between the shareholding ratio of executives and high-quality external audit requirements.The contribution of this paper mainly includes the following two points:on the one hand,for the internal of the company,reasonable foreign ownership and executive shareholding are of great significance for improving the company's governance level;Shareholding and executive shareholding help regulate corporate behavior,and the state can pay taxes based on highly credible audit reports to reduce tax evasion.