Research On The Relationship Between Media Supervision And Audit Opinion Under Reputation Mechanism

Media Supervision works as an informal external governance mechanism,be regarded as the "Fourth party right" which independent of the legislative,judicial and administrative system,plays the role of the "Economic Police",the effect on the corporate governance has been recognized by scholars both at home and abroad.Until now,there is little domestic literature study on the impact of media supervision to the audit opinion,and the existing literature which explore the relationship between them start from the perspective of the Media Supervision Quantification,in this paper,I will study from not only quantification but also include the Width and Depth of media supervision.Besides,the reputation mechanism of Accounting Firms plays a significant role under the relative mature legal system and the capital market environment which has been fully proved by abroad scholars.However,due to the imperfect legal system and the capital market starts late compare to the west countries,the governance effect of Accounting Firms reputation mechanism is still controversial in the domestic academic circles.In this paper,I will select the Listed Companies on the A shares from 2009 to 2015 as samples to study these problem.The results show that the more negative reports of the Media on the Listed Company,the higher probability of the non-standard audit opinion it will be issued by the auditor.The more widely of the media negative reports on the Listed Company,the higher probability of the non-standard audit opinion it will be issued by the auditor.The deeper of the media negative reports on the Listed Company,the higher probability of the non-standard audit opinion it will be issued by the auditor.Moreover,the media negative reports*big4 is not significant,shows that the reputation mechanism in China now has not played a significant role yet,this conclusion makes a supplement to the current existing research.On this basis,this paper analyzes the causes of this result,and puts forward relevant policy recommendations.