Study On The Impact Of Going-Concern Audit Opinion On Debt Financing

In the competitive market environment,enterprises are faced with severe challenges brought by huge business risks.The uncertainty of continuous operation is troubling the development of the company.Once the enterprise cannot continue to operate,it will cause serious economic losses to extermal stakeholders.Therefore,the public begins to pay more attention to the accounting information about the uncertainty of going concern,and the disclosure of going concern ability in the audit report has gradually affected the reasonable decision of users of financial statements.Certified public accountants evaluate and determine the enterprise's going-concerm capability and major uncertainties,and issue going-concern audit opinions,which are very valuable information for creditors.When the listed company is issued with the going-concern audit opinion,it is equivalent to sending a negative signal to the users of financial statements and playing a warning role at the same time.Therefore,creditors are likely to reduce and avoid the loss caused by the risk by adjusting the debt contract.This paper takes the going-concern audit opinion as the research subject,combines the realistic background to carry out theoretical analysis and empirical test,and explores the correlation between the going-concern audit opinion and debt financing.At present,most scholars analyze the market reflection of going-concern audit opinions and their impact on equity financing from the perspective of securities market and investors.However,there are few studies on the correlation between the going-concern audit opinions and debt financing.It ean be seen that there i5 still a large space to explore the impact of going-concern audit opinions on debt financing.Starting from the background of listed companies' financing situation and the increasingly prominent role of going-concem audit opinions,this paper reviews and summarizes domestic and foreign literatures from the three perspectives of the effectiveness of going-concern audit opinions,factors affecting debt financing and the impact of going-concern audit opinions on debt financing.Subsequently,relevant basic theories were used for reference and hypotheses were proposed.A-share listed companies with non-standard audit opinions from 2012 to 2017 were taken as research samples to establish A multiple regression model to verify the hypotheses.The empirical research results show that:when other factors remain unchanged,compared with the listed companies that are issued with non-going-concern audit operations,the companies that are issued with going-concern audit operations have higher debt financing costs.When other factors remain unchanged,the impact of going-concern audit operations on the increase of debt financing cost of state-owned listed companies is smaller than that of non-state-owned listed companies.This paper innovatively studies the decision usefulness of the going-concern audit opinions from the perspective of debt and debt relationship,analyzes the impact and degree of the opinion on debt financing cost,and the impact of it on debt financing decisions under different property rights.By conducting empirical research,this paper examines whether creditors can accurately distinguish the difference between the information content of going-concern audit operations and other types of audit opinions,and whether they can effectively grasp this information and make corresponding decisions.It provides a new research direction and thought for the study of audit opinion and debt financing.