Empirical Research On The Impact Of The Ownership Structure Of The Small And Medium-sized Enterprise Board To Audit Quality

With the separation of the right of ownership and modern enterprises management,independent audit be produced in order to ensure the true and fair view of the financialreport, provide timely and accurate information for investors. Quality audit services caneffectively inhibit the behavior of earnings management in the audited units’ management,and the tunnel behavior of large shareholder to occupy the interests of minorityshareholders. It can also improve the reliability of financial information of listedcompanies so as to stabilize the capital market. However, since the establishment ofChinese capital market, there has had a lot of accounting scandals, which brings theconcerns of many investors on the quality of accounting information. Audit quality notonly relates to the reliability of accounting information and the healthy development of thecapital market, but also be crucial for the professional development of certified publicaccountants. Therefore, the influencing factors of audit quality becomes the concern ofmany scholars. It has negligible impact on audit quality of ownership structure. But therehas some differences in the conclusions about the influence on the audit quality which theownership structure takes, and there has less research takes SME board listed company asthe example. Therefore, this study attempts to research these influence which has beenmentioned combine the characteristics of SME board listed company.Firstly, this paper defines related concepts of company’s audit quality, then combinesthe characteristics of SME board listed company, research the he influence on the auditquality which the ownership structure take from two aspects of the quality and quantity ofthe shareholding structure. Secondly, we take the data of SME board listed company from2009to2011as the example and establish empirical models. This paper considers thecharacteristics of SME board listed company and draws previous research results. We takethese explanatory variables such as the proportion of state-owned shares, the proportion ofcorporate shares, the proportion of shares of natural persons, stake of the largestshareholder, the power balance, the separation of the cash flow right and the controllingright. Take the absolute value of controllability accruals as the explained variable. Takethese controlled variables such as the size of the company, the proportion of independentdirectors, asset-liability ratio, return on assets and operating cash flow. Then the paper establishes the multiple linear regression models of these indexes and uses SPSS17.0toexams and analyzes the models.We obtain the following conclusions: there shows a negative correlation relationshipbetween the proportion of independent directors, the ownership concentration, theseparation of the cash flow right and the controlling right and audit quality; there shows apositive correlation relationship between the proportion of shares of natural persons, theproportion of corporate shares, the power balance and audit quality. These conclusionsindicate that it is reasonable listed companies’ equity distribute. It can efficiently improvethe quality of audit by shorten the control chain. At last, this paper puts forward somesuggestions based on above conclusions.