Going-concern Opinion,Institutional Ownership And Debt Financing Of Listed Companies

The financing methods and financing channels of listed companies in China have become more and more diversified,but debt financing has been widely concerned as the main external financing means of enterprises.The serious information asymmetry between creditors and debtors is one of the main reasons hindering corporate debt financing.Creditors need to consider multiple factors in order to reduce credit risk when making credit decisions.The business status of enterprises are the primary considerations.The CPAs can independently and objectively verify the financial information of the enterprise and ensure the authenticity and reliability of the financial information.It is an effective external supervision mechanism.The audit reports have the usefulness of decision-making for creditors.The Going-concern opinion is based on the type of basic audit opinion,and the CPAs emphasize and disclose important matters related to the company's ability to continue to operate in the future.This type of audit opinion can directly convey to investors the signal of high credit risk,which will have a negative impact on corporate debt financing.In addition,the audit opinion of the going concern often refers to a variety of matters that lead to the uncertainty of continuing operations.The severity of the continuing operations problems represented by different reasons is also different,and the additional information content brought to investors is also different.Therefore,it is also practical to classify Going-concern opinions.In addition to auditing,this external oversight system,institutional investors have long been considered to have external oversight for companies.In recent years,institutional investors have occupied an increasingly important position in China's securities market.Institutional investors have more professional information acquisition ability,and can alleviate the information asymmetry problem inenterprises by participating in corporate governance,which will help enterprises to develop in the long run.Therefore,for companies with continuing operations problems,institutional investors holding shares can help ease debt financing constraints.At present,there is little research on the role of Going-concern opinions in the market,which is influenced by institutional investors.Therefore,this study can further enrich this research direction and has theoretical and practical significance.Based on the summary of relevant literatures,this paper analyzes the relationship among the Going-concern opinion,institutional investors and debt financing,and proposes corresponding research hypotheses,all of which provides a foundation for subsequent empirical research.The empirical part of this paper takes the A-share listed companies of Chineses stock markets from 2007 to 2017 as samples.Firstly,the statistics for the Going-concern opinions of the continuous operation over the years are counted,and then the overall situation of the samples is displayed through descriptive statistical analysis.Through the OLS regression models,the correlation between the Going-concern opinion and the debt financing,with the adjustment role of the institutional investment in the relationship between the two are examined.This paper creatively divides the Going-concern opinion into four categories into the regression model according to the reasons for the issue,and comprehensively considers the heterogeneity of institutional investors,and divides them into pressure resistance and pressure sensitivity into the regression model.Through all the analysis above,this paper finally draws the following four conclusions.(1)There is a negative correlation between the Going-concern audit opinions and the scale of corporate debt financing.(2)The financial management issues mentioned in the Going-concern audit opinions have a greater impact on corporate debt financing than the reference to performance issues.(3)Institutional investors' shareholdings will weaken the binding effect of the Going-concern audit opinion on debt financing.(4)Institutional investors have heterogeneity in the regulatory role of the relationship between Going-concern audit opinions and debt financing,and it is the pressure-resisting institutional investors that mainly weaken the binding role.Based on the above conclusions,this paper also provides relevantrecommendations for CPAs,institutional investors,creditors and debtors,and the governments.