Market Reactions To The Practice Of New Auditing Standards

As we all know, the security market is the most effective and most important channel that enterprises obtained necessary capital . So its healthy development will have a great influence on the healthy growth of enterprises, and then it will have an impact on the development of economic greatly. So how to build a security market which is canonical, high efficiency and full of competitions is the question that government departments relating to the security market pay much attention to. Only in this market can the optimum allocation of economic resources be realized. And at the same time the canonical security market is also the symbol that one country' s market economy move to maturity gradually.It has proved that to administer the security market is much more difficult than to build it. And administrating the disclosure of accounting information is an important part of administering the security market. The audit opinions, as the result of auditor' s auditing to the financial report, has played an important role in regulating the disclosure of the information of enterprises. So investors cared the disclosure of audit opinions, and the audit opinions will have a strong influence on investors 'decisions. Finally, it will influence the growth of the security market.What characteristic on earth does the market conducting effect of audit opinions have? Until now there are no unanimous conclusions on this question in either foreign or domestic documents. This is mainly caused by the difference of the design of the empirical research process and of the sample selection. Since 2007, after the practice of the new auditing standards, our country strengthened the supervision of the information disclosure of listed company. This may improve the credibility of the financial statement. Under this background, what characteristic will be the market conducting effect of audit opinions? This problem is worth thinking deeply and studying. This article attempts to select the data from year 2004 to year 2007 of the listed companies as samples, and then study the characteristics of the market conducting effect of audit opinions on the foundation of the analysis of relevant documents and of the theoretical analysis. So as to offer all parties relating to the security market references.Theoretical study and empirical study are both used in this paper. First, this paper made analysis and sum-up on the former study through review of the literature and also analyzed the defects of the current auditing commission in the theoretical way. Then, this paper made some hypotheses and set up the variables of the determinants. The listed companies on the Shanghai and Shenzhen A-share stock market in years of 2004 to 2007 are the samples of the empirical study. Descriptive statistics and the logistic regression are used in this paper.Through analysis we found that modified audit opinions in 2007 have significant negative reaction and the conducting effect of qualified audit opinions is obvious different from the unqualified audit opinions with explanatory notes. This paper draw a conclusion that the practice of the new auditing standards background has positive influence on auditing, and the audit quality has been improved in a certain extent. Still for some reasons, this article has some deficiencies. This may reduced the validity of the empirical research of this paper...