Relationship Between Social Audit And Executive Corruption

In China's social transition period,the problem of corporate corruption is becoming more and more serious.The excessive corruption of the employees in the occupation,bribery,public funds,food and drink,etc.,not only damages the value of the enterprise but also undermines the social atmosphere and reduces the economic growth speed.On the one hand,corruption is caused by the unsound internal system.The long-standing principal-agent problem and the "insider control" problem provide the conditions for the breeding of corruption.The imperfection of corporate governance reform,the loopholes of supervision mechanism and the failure to implement relevant laws and regulations make it extremely easy for centralized executives to seek personal gains for themselves.The rent-seeking of power,high-value on-the-job consumption,and even some crimes such as corruption and bribery not only hinders the normal operation of enterprises,but also damages the fundamental interests of the people,undermines social stability and leads to economic destitution.On the other hand,the adverse external environment will also aggravate the occurrence of corruption.The inadequate supervision of some auditing institutions leads to the imbalance of power and responsibility within enterprises,the expansion of executive power and the aggravation of corruption.Therefore,to eradicate corruption,we must start from the internal and external environment,and optimize the internal configuration of the enterprise,while also creating a good external environment for the enterprise.In recent years,China has put forward higher requirements for social auditing,and must effectively play the role of auditing in building a well-off society in an all-round way and strengthen the independence of CPAs.Social audit,as an important force in regulating the order of market economy,can protect public interests.The separation of the two rights makes the interest relationship between the owner and the operator become more and more complex.At this time,the social audit in the third party status can play the role of notarization audit and maintain the public interest.Social auditing is also conducive to attracting foreign investment and promoting the development of the foreign economy.With the deepening of the country's opening up to the outside world,Chinese-foreign joint ventures,wholly foreign-owned enterprises and other enterprises have sprung up.At this time,CPAs are required to provide various professional and fair consulting services.Pre-audit investigations and understanding can also solve the problem of information asymmetry,including monitoring and regulating the allocation of power,and making it transparent and transparent,which can inhibit the occurrence of corruption to a certain extent.However,considering China's national conditions,more theoretical and empirical data are needed to support the relationship between social audit and executive corruption.Therefore,in the current context of combating corruption and promoting honesty,based on the research on the behavioral incentives of senior management in the enterprise and the comprehensive consideration of internal and external governance mechanisms,this paper constructs “internal power allocation—external audit governance—executive corruption "This logical framework uses the 2012-2017 Shanghai and Shenzhen stock exchanges to conduct an empirical analysis of the research samples.The results show that the increase of executive control will lead to corruption;and high-quality social audit can inhibit executive corruption to a certain extent;but further research finds that with the continuous increase of executive control,society The effectiveness of audits in the governance of executive corruption will be weakened,and in private enterprises,social auditing has also contributed to the occurrence of executive corruption.In addition,considering the endogenous effects that the self-selection problem may bring,this paper uses the Heckman two-stage model to test the robustness.The main research results have no substantial changes.In this paper,the following innovations have been made in the previous research: Firstly,this paper studies the corruption of executives from both internal and external perspectives,and studies the corruption from the perspective of internal control alone.Secondly,the past is about executives.The research on corruption mainly focuses on the environmental factors such as property rights,salary control,political connection and corporate performance.This paper has made a little expansion and supplement on this basis,and added the factors of executive power to improve the corporate governance structure.