Equity structure,Crossing-Listing and the Demand of Certified Public Accountants

Equity structure,Crossing-Listing and the Demand of Certified Public Accountants


Author:Han Lirong,Liu Zhiyang Journal:Contemporary Economic Research Date:2018(4)

Abstract: Whether the demand for Certified Public Accountant services by listed companies is influenced by ownership structure and the environment in which stocks cross-list, for CPA,facing the market needs to improve service quality and promote the development of the capital market is of great significance.Under the conditions of controlling other variables, the total demand of audit service, non-audit service is negatively correlated with the nature of state-owned enterprise, the separation degree of two rights, positively correlated with the balance degree of stock ownership, and positively u-shaped with the proportion of the first largest shareholder.Audit services, non-audit services and total demand of service is positively correlated with cross-listing. Under the condition of cross-listing, audit services, non-audit services and the total demand of services is more negatively correlated with the degree of separation of two rights, while the positive correlation between non-audit services and the degree of ownership balance is weakened. Therefore, when begin the audit services and non-audit services, certified public accountants should fully consider the influence of the degree of equity separation, the shareholding ratio of the largest shareholder and the degree of equity checks and balances, be vigilant against opportunistic behaviors and audit risks caused by these factors, follow norms and practice prudently

Key words: Ownership structure; Cross-listing;Demand of Certified Public Accountants; Audit services; Non-audit services

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