Audit Opinion,Market Position And Commercial Credit Financing

The development of today's market economy is faster and faster,and new enterprises are springing up.Meanwhile,the economic trade between enterprises is more and more frequent.To achieve sustainable development and vitality,enterprises have to find a sufficient source of funding,make full use of a variety of financing methods.Commercial credit financing has the advantage of low funding costs,so it is favored by more and more enterprises.Scholars have conducted a lot of researches on the commercial credit financing,which are mainly focusing on the motivation of commercial credit,the relationship between commercial credit and bank borrowings,as well as the influencing factors of commercial credit and so on.However,the research on the influence of the interaction between audit opinion and market positions is relatively less.The main question of this paper is whether the audit opinion issued by the enterprise will affect its commercial credit financing? Furthermore,is the effect of audit opinion in its commercial credit financing different for the firms in the different market positions? So,this paper has selected the data from annual reports of all A-share listed companies in Shanghai and Shenzhen from 2012 to 2015 as the research sample.In this paper,it takes the commercial credit financing as the explained variable,and the market position,the audit opinion and the interaction are explanatory variables.The empirical results received through building models and conducting empirical analysis:First,there is a positive correlation between market position and commercial credit financing.Enterprises with high market position have advantages in negotiating ability,capital mortgage and information supply,and will get more commercial credit financing;Commercial credit providers are skeptical about the repayment ability of businesses with lower market positions,and such enterprises can only get less commercial credit financing.Second,there is a positive correlation between the audit opinion and the enterprise commercial credit financing.When the enterprise is issued a clean audit opinion,it shows that the enterprise has high quality financial statements,and suppliers will trust in the enterprise,which may help enterprises get more commercial credit financing;If the enterprise was issued a non-clean audit opinion that year,it will pass a negative signal to the commercial credit provider,and commercial credit providers,in order to avoid risks,will be more careful to make commercial credit decisions,and enterprises can only get less.Third,compared with enterprises with high market position,the enterprises with low market position are issued non-clean audit opinion,and the level of commercial credit financing will be more significantly decreased in the next year.For the listed companies with low market position,the trust mechanism of the market position is missing,and commercial credit providers may be more concerned about the enterprise's other trust mechanism-audit opinion,and at this point,the "bad news" of the non-clean audit opinion will have a greater warning to the commercial credit provider.At last,based on the research conclusion,it puts forward relevant policy recommendations in the perspectives of auditor's professional behavior,enterprise operation management level improvement and commercial credit system construction.This study is helpful for a more clear understanding of the role and rules of audit opinion in commercial credit debt contracts and to improve the value of audit work in commercial economic activities;In addition,the study also provides practical advice for commercial credit financing.