Reconstructing The Environmental Audit Mode From The Perspective Of Environmental Property Rights Behavior

The extreme of property rights evolution which is Keynesian economic thought and policy oriented led to crisis of sustainable economic development and the sustainable running of environment virtuous cycle. The Report on the 18 th National Congress of CPC emphasized strengthening environmental supervision, improving the environmental protection responsibility system and the environmental damage compensation system. However, the current one-way tripartite environmental audit mode has failed to contain the deteriorating environmental governance problems. In order to solve the environmental problems, this dissertation intends to reconstruct a new environmental audit mode. The following is the summary of the research.Firstly, the literature review of environmental audit home and abroad is provided as the theoretical basis of the reconstructed environmental audit mode. Meanwhile, the important specific viewpoints needed to reconstruct the environmental audit mode are extracted from other theories, such as contract theory, property rights theory, public goods theory, externality theory, sustainable development theory, large cycle costs theory and environmental resources value theory, which give theoretical support for the following reconstructed environmental audit mode. Secondly, the nature of environmental audit is explored from the perspective of repairing the incompleteness of super-contract. From the exploration of one-way tripartite audit relationship, it is concluded that the environmental audit contract system which has diminishing marginal returns could maintain and realize transcendent independence-the nature characteristics of environmental audit. In order to ensure the transcendent independence and fairness of the environmental audit parties‘ benefits, the social principal of environmental audit, the fourth party, which is ignored by the current environmental audit theories, is introduced to new environmental audit relationship. Therefore, the new mode of ―two-way modern quartet environmental audit‖, which has diminishing marginal returns, is reconstructed. The environmental auditor may offer auditing service to the three parties: social principal of environmental audit, organizational principal of environmental audit and the organizational agent of environmental audit formed from the layers of agency. Moreover, from the perspective of super-contract, the current one-way tripartite environmental audit mode is reanalyzed and the two-way modern quartet environmental audit is reconstructed based on the above analysis, as well as the characteristics and functions of new environmental audit mode are discussed to point out its value.And finally, according to the formation of the new environmental audit mode, for the delegation responsibility of environment, the organizational agent intends to understand the rationality of delegation responsibility, and naturally looks for environmental auditor as a notary. Therefore, the organizational agent employs environmental auditor and is defined as auditee of environmental audit. The auditee of environmental audit requires auditing service to re-define, re-protect and re-report the delegation responsibility of the environment property rights fairly and equitably so as to avoid the infringement on their equity. Therefore, environmental auditor offers auditing service to the organizational agent of environmental audit, so that the organizational agent need pay for the value of environmental auditing service. And empirical test on the delegation of environment is conducted. Due to the fact that the organizational agent tries to maintain their own interests through buying environmental auditing service, this empirical study selects executive compensation and related variables to characterize environmental auditing mode on delegation. At the same time, the variable environmental auditing quality to characterize the justice and fairness of environmental auditor is selected as the dependent variable, and its sample data is from the questionnaire to the principal of environmental audit in the enterprises from the five seriously polluted industries, i.e. biomedical industry, hydropower coal industry, paper and printing industry, mining industry, petrochemical plastics industry. For the accountability of environment, the social principal a nd organizational principal intend to learn about the implementation of the accountability of the organizational agent and naturally look for environmental auditor as a notary. Therefore, the principal employs environmental auditor to avoid the infringement on their equity and is defined as client of environmental audit. Theoretically, the principal of environmental audit need pay for the value of environmental auditing service. And empirical test on the accountability of organizational agent is conducted. Due to the fact that the principal tries to maintain their own interests through buying environmental auditing service, this empirical study selects shareholder ‘s equity and related variables to characterize environmental auditing mode on accountability as the independent variable, and the variable environmental auditing quality is selected as the dependent variable, and its sample data is from the questionnaire to the organizational agent of environmental audit in the enterprises from the above five seriously polluted industries. Thus dissertation employs TSLS regression and OLS regression by using software STATA11.0 to conduct empirical test on environmental audit on delegation and environmental audit on accountability.Regarding that the new environmental audit mode is general problem-solving, this dissertation further conducts normative study on the dynamic pricing of strategic environmental auditor to extend the implication of the new environmental audit mode, which is to pave the way for the future study.