Study On The Impact Of Negative Opinions’ Internal Control Audit Report On Enterprise Financing

Internal control information is an important supplementary information of corporate financial information,which can alleviate the information asymmetry between stakeholders and corporate management.Therefore,investors have a strong demand for the disclosure of internal control information.China’s internal control audit system developed late,and the mandatory internal control audit policy has only been gradually implemented since 2011.Since the mandatory internal control audit,internal control audit reports have received increasing attention.Under this background,it is of theoretical and practical significance to study the impact of negative opinions on internal control audit reports on listed companies.At present,most researches on internal control are focused on the defects of internal control.Only a few scholars conduct research from the perspective of internal control audit reports,and the results are inconsistent.Based on this,this article chooses to study from the perspective of internal control audit report.This article first summarizes the relevant literature on domestic and foreign internal control,internal control audit,and internal control audit opinions on corporate debt financing and equity financing.Then,the related concepts are defined and the related theories studied in this paper are expounded.Then on the basis of analysis and theoretical analysis of the overall situation of the internal control audit report of China in 2017.Feilo Acoustics was selected as a research case to specifically analyze the impact of negative opinions on its debt financing and equity financing.Finally,we draw conclusions and make recommendations through research.The results of the study indicate that the internal control audit report issued by the negative opinion of the listed company will have a negative impact on corporate financing.In terms of debt financing,the amount of bank borrowing decreased,the proportion of short-term and long-term borrowings decreased,and the cost of borrowing increased.The commercial credit line provided by suppliers decreased,and the ratings of bonds issued by companies on the market declined.In terms of equity financing,it will have a negative impact on the company’s stock price,and the company’s cost of equity has increased.Finally,combined with the conclusions of the research,recommendations are made for listed companies,investors,and regulators.The research innovation of this article is that the relevant research at home and abroad is mainly based on large sample empirical research,and it is relatively rare to take a single case for relevantresearch.This article mainly adopts the method of case study to carry out research,which has a more typical significance.