Correlation Study On Listed Companies’ Audit Opinion Of Annual Report And Debt Financing

The financing problem has always been the hot spot of the financialresearch. The debt financing, as an important content of financial management,is also one of the important ways of financing. Therefore the research on debtfinancing has the extremely important significance. However, there are manyfactors influencing the debt financing of listed companies. This paper chooses toresearch on the listed companies’ debt financing from the perspective of theaudit opinion. As an alternative external protection mechanism, independentaudit can provide the creditor more sufficient and reliable information in orderto alleviate the problem of asymmetric information. The aim of the study is toexplore the relationship between audit opinion of the annual report and the debtfinancing of listed companies systematically. This paper studies the impact ofannual report of audit opinion on the cost and structure of the debt financinglisted companies from the type and reliability of audit opinion of annual report,and then analyzes the audit opinion information in the debt financing.In this paper, it adopts the combination methods of empirical research andnormative research, and it uses the data from the financial statements of listedcompanies from2008to2012and the CSMAR database, and then finishes theanalysis of the data by SPSS statistical software. Firstly, this paper analyzes theinfluence factors of debt financing systemically. And it divides the factors intotwo parts: the internal factors and the external factors. The internal factorsinclude company size, solvency, asset structure, growth and profitability. Andthe external factors are the market interest rates, the degree of the financialmarket’s development and the audit opinion. Secondly, this paper analyzes thetypes and reliability of listed companies’ audit opinion of annual reportrespectively, and discusses the correlation between the types and the reliability of audit opinion and debt financing. Then it summarizes the practicaldistribution of audit opinion and put forward the measure of audit opinion’sreliability. Thirdly, this paper gets the following conclusions through theempirical study: the type of audit opinion of annual report negatively related tothe interest expenditure rate; the type of audit opinion of annual report and long-term debt ratio positively correlated, long-term debt ratio of listed companieslarger, easier to get long-term debt financing when the audit opinion of annualreport is unqualified opinion; the reliability of the annual audit opinionsnegatively related to the interest rate, the higher reliability of audit opinion ofannual report, the lower cost of debt financing of listed companies; thereliability of audit opinion of annual report and long-term debt ratio positivelycorrelated, the higher reliability of audit opinions of annual report, the listedcompanies easier obtain to long-term debt financing. At last, this paper putsforward the optimization countermeasures of debt financing from theperspective of audit opinion. They respectively are: to give full play to the roleof the internal audit committee; to strengthen the selection and communicationof accounting firms; to improve the effectiveness of internal audit; to furtherstrengthen the supervision and punishment of the accounting profession.The main innovation point of this paper is that this paper expands the scopeof the study of debt financing, putting the commercial credit, corporate bondsand leasing into debt financing category, and loan, bond interest expense also beincluded in the cost of debt financing. For the scope of existing literature on thecorrelation study between listed companies’ audit opinion of annual report anddebt financing is limited to bank loans. So it will get a more comprehensiveanalysis of the impact of the audit opinion on debt financing. And this paper putforward the standard measure of the auditing opinion’s reliability innovative.The explanatory variables in the created regression model are the size of theaccounting firm, the number of certified public accountants and whethersupervised and punished by accounting profession to further deepen the existingresearch. Based on the audit opinion, from the perspective of giving the full playof the internal audit committee, strengthening the choice and communication ofaccounting firm and improving the effectiveness of the internal audit, this paperput forward the innovative optimizing countermeasures for the debt financing of listed companies.