Study On The Concentration Ratio Of Audit Market On Listed Companies In China

In this paper, we take accounting firms which are stock-auditing qualified as the subject under research, and choose accounting firms which are stock-auditing qualified and the whole A-stock listed companies they audit from 2004 to 2009 in China as the statistical samples. By the relevant data that A-stock listed companies disclosed, we test and analyze the A-stock listed company's audit market concentration ratio, and study the impact of the audit market concentration ratio to the accounting firm's auditing quality.This paper is divided into five parts. This paper starts with an introduction that introduces the background and the significance of this research and some theories. Chapter two proposes audit market and audit market concentration ratio, and reviews the internal and external literature over the audit market concentration ratio. Chapter three analyses the A-stock listed company's audit market concentration ratio. We choose the total assets, audit fees and the number of clients to testing the audit market concentration ratio, and also research the accounting firm industry expertise and geographical features in our audit market, to conclude the competition situation of our audit market. By studies we conclude that, our audit market concentration ratio has improved, the audit market has show magnates monopoly, and industries audit markets present low level of concentration, the audit market of A-stock listed companies also has distinctly regional distribution feature. Chapter four studies the impact of the audit market concentration ratio to the accounting firm's auditing quality, and concludes that auditing quality denoted by charge rate is improved with the audit market concentration ratio improved higher and higher. Then the last chapter, conclusion, Chapter five proposes this paper's conclusion, limitations and some advises.