Research On The Impact Of Chairman’s Financial Expertise And Auditor Selection On Financing Constraints

Enterprises are the new force of national economic and social development,not only playing a key role in expanding employment,invigorating the market,and improving people’s livelihood,but also an important force in promoting high-quality economic development.At this stage,if enterprises want to achieve sustainable development,they must obtain long-term and stable financial support.However,most enterprises in China are faced with problems such as difficulty and high cost of financing in their operation and development,which largely hinder the growth and expansion of enterprises.Most of the research about the influencing factors of corporate financing constraints focused on the overall financial environment,national policies and the objective operating conditions of enterprises themselves,but ignored the influence of management’s financial expertise,which is an invisible soft factor.China’s equity structure is highly concentrated.And listed companies have gradually formed an insider control pattern centered on the actual controller of the chairman.As the representative of major shareholders and the most powerful leader of the enterprise,the chairman has a great say in the strategic decision-making and operation and management of the enterprise.In recent years,more and more well-known enterprises have chosen to hire people with financial background as the chairman of the company.From the perspective of the company’s internal operation and management,managers with financial expertise can better play the governance effect,effectively perform the supervision and consulting functions,improve the quality of information disclosure,and reduce the degree of internal and external information asymmetry of the company.Does this help alleviate the problem of enterprise financing constraints? In addition,information intermediary in the external environment is another important mechanism to reduce information asymmetry.Independent audit,as one of the important participants in the capital market,plays a key role in alleviating the problem of information asymmetry.Therefore this paper examines the relationship between the chairman’s financial expertise,auditor selection and financing constraints,which has practical guiding significance for Chinese listed companies to alleviate financing constraints.Based on this,the paper sorts out the relevant literature on financing constraints,chairman financial expertise and auditor selection,and expounds the information asymmetry theory,high-level echelon theory,resource dependence theory and audit demand theory.And then the paper selects China’s A-share listed companies from 2009 to 2021 as the initial research sample,excludes the financial and insurance industry and the samples of companies subject to special treatment(ST),then studies the following aspects: first,the impact of the chairman’s financial expertise on financing constraints;second,the auditor chooses the intermediary role between the chairman’s financial expertise and financing constraints;third,the moderating effect of industry competition,property rights and chairman power on the relationship between the chairman’s financial expertise and financing constraints is explored.The results show that: firstly,a chairman with financial expertise can effectively alleviate the level of financing constraints faced by enterprises.Second,chairman with financial expertise will send a positive signal to the market by selecting high-quality auditors,alleviate the asymmetry of internal and external information,and reduce the level of financing constraints of the enterprise.Thirdly,When the competition in the industry of a listed company is more intense,the negative correlation between the chairman’s financial expertise and financing constraints is more significant.Fourth,in non-state-owned enterprises,the negative correlation between the chairman’s financial expertise and financing constraints is more significant.Fifth,the greater the power of the chairman,the negative correlation between the chairman’s financial expertise and financing constraints is more pronounced.On the basis of the above research conclusions,this paper provides suggestions for the selection of the chairman of listed companies and puts forward targeted countermeasures for potential investors.It has practical reference significance for giving full play to the chairman’s governance role,improving the efficiency of investors’ decision-making,improving the financing ability of enterprises and releasing the vitality of enterprises,and is conducive to the sustainable and stable development of China’s economy.