Institutional Environment,Enterprise Innovation And Audit Risk

Since the 12 th Five-Year Plan and the 18 th National Congress of the Communist Party of China,scientific and technological innovation has been highly valued by the Party Central Committee and the State Council.China’s scientific and technological innovation has shifted from tracking to tracking and running,leading and coexisting,and is in an important period of systemic capacity improvement.The overall situation of national development has been placed at the core.In the report of the 19 th National Congress,General Secretary Xi Jinping pointed out that "innovation is the first driving force for development and the strategic support for building a modern economic system." Once again,technological innovation has placed an important position in national development.For enterprises,innovation activities can not only improve corporate performance and corporate value,but also help companies establish and maintain market competitive advantages,occupy more market share,and obtain more economic benefits.Therefore,innovative R&D activities are indispensable for enterprises.Less development strategy.In order to overcome the shortcomings of traditional risk-oriented auditing,modern risk-oriented auditing methods based on system theory and strategic management theory have been paid more and more attention.The operating risks of audited organizations have become the focus of modern risk-oriented auditing.CPAs have realized that It is necessary to systematically and comprehensively consider the impact of the business strategy risk of the audited entity on audit risk.As a high-risk,high-adjustment cost and long-term R&D activity,enterprise innovation is the core business link of the enterprise,affecting the operation of the enterprise,product production and sales,market share,etc.,the market competitiveness brought by the failure of research and development,bankruptcy,etc.Both have increased the business risk of the company,which in turn has increased the audit risk faced by CPAs.Based on this,this paper studies the relationship between enterprise innovation investment and audit risk.At the same time,due to the unbalanced development of institutional environment in various regions of China,enterprises are in different institutional environments,which may have an impact on the relationship between innovation investment and audit risk.Therefore,this paper further studies the relationship between enterprise innovation investment and audit risk in combination with institutional environment,and discusses the regulatory effect of institutional environment from three perspectives of government intervention,financial marketization and legal environment,and again for enterprise innovation investment and audit risk.The relationship provides theoretical and empirical evidence.This paper is based on system theory,strategic management theory,modern riskoriented audit theory,business risk theory,and draws on the relevant research results of domestic and foreign scholars,mainly from the following two aspects: First,between enterprise innovation investment and audit risk Relationship research.Second,the impact of institutional environment on the relationship between corporate innovation investment and audit risk.This part takes the institutional environment as a regulatory variable,and examines whether the external institutional environment in which enterprises are located differs from the perspectives of government intervention,financial marketization,and legal environment,and whether it will affect the relationship between innovation investment and audit risk.This paper selects A-share listed companies from 2013 to 2017 as a sample,and uses a combination of theoretical analysis and empirical analysis to study and study.First,the innovation investment of enterprises is positively related to audit risk,that is,the more innovation investment of enterprises The higher the audit risk faced by CPAs.Second,the different institutional environments in which enterprises are located have different effects on the relationship between enterprise innovation and audit risk.That is,the better the institutional environment in which the enterprise is located,the more innovation investment the enterprise has,and the higher the audit risk.This paper examines the relationship between the three in three aspects: government intervention,financial marketization,and legal system.The specific performance is that the better the legal system and the higher the degree of financial marketization,the more positive the relationship between innovation investment and audit risk,and the regulatory effect on corporate innovation investment and audit risk is less obvious.The main contribution of the research in this paper is that this paper will study its impact on audit risk from a new perspective of enterprise innovation.From this perspective,it enriches the research literature on the influencing factors of audit risk.Further,the institutional environment is used as a regulatory variable to study the regulatory role of institutional environment on the relationship between corporate innovation and audit risk from the perspectives of government intervention,financial marketization and legal system.In this paper,the above three are included in a framework for research,and from the perspective of the institutional environment,the existing research has been expanded,and the gap has been filled to some extent.