Research On The Impact Of Audit Opinion On The Bank Credit Decisions

In economic society, the public requires all kinds of information to make decisions. Enterprises have the advantage of understanding the true situation of themselves, such as operating results, cash flow and financial condition. The public as the outsiders of enterprises, are difficult to obtain accurate and reliable information. For purpose of making reasonable decision, the public requires more reliable infonmation from enterprises, including accounting infonm ation and audit information.Audit as a mechanism for evaluating and supervising economic activities, can reduce the degree of information asymmetry between enterprises and stakeholders. Audit opinion as the written document which can show auditor’s opinion about the quality of financial statements, is the important carrier of information delivery. We can study on the value of the audit opinion from the securities market and credit market. Domestic and foreign scholars have made a deep and comprehensive research on the effect of audit opinions in securities market. While the study on Impact of audit opinions on the bank credit resource allocation, have not reached a unified conclusion and got a mature stage, weather at home and abroad. Based on this, this thesis chooses the perspective of debt, focuses on the audit opinion’s value relevance in our bank credit decision-making, thereby provides theoretical guidance and certain empirical evidence.Based on the2010-2012listed companies in Shenzhen and Shanghai stock exchange markets as research sample, this thesis researches on the effect of audit opinion and auditor size to bank credit decisions. In addition, this thesis will further distinguishes the whole samples for the low degree of marketization of the sample and high degree of marketization of the sample, studying whether the marketization process influences the impact of audit opinion on the lending decisions. The thesis mainly includes the following five parts:The first part is the introduction, which mainly introduces the research background, research significance, innovation points, methods of the study. Also it puts forward the structure arrangement of the thesis. The second part is reviews extant literature at home and abroad, and makes relevant comments. We found that Compared with foreign scholars mainly adopting experimental approach, multivariate regression analysis method is popular with domestic scholars. The third part aims to describe theory basis. This part firstly introduces the theory of asymmetric information, signaling theory, and then introduces the function of the audit on bank credit decision-making. The fourth part is the empirical research design and test. This part includes putting forward the hypothesis, establishment of models, selection of variables and sample, and results of empirical analysis. Through the empirical study, we found that the modified audit opinion significantly and negatively impacts the decision-making of bank. The fifth part is the final part of the thesis. According to the theoretical and empirical analysis of the results, the thesis conclusions and policy suggestions are summarized, besides, the related contributions、limitations of this thesis as well as the outlook for future research are listed in the end.