Government Auditing Environment and Audit Efficiency:Theoretical Framework and Empirical Data

Abstract:This paper selecting the sample of Chinese listed companies on the GEM from 2010-2015，based on the perspective of Chinese economic policy uncertainty,empirically examines the relationship between capital structure and growth of companies.We find that capital structure is negative with the growth of companies.The impact of capital structure on companies’growth is more significant when economic policy uncertainty is high.

Keywords:Capital structure Economic policy uncertainty Companies growth

LI Xianxian Zheng Shiqiao
（Government Auditing Institute/Research Institute of Audit,Nanjing Audit University）

Abstract:Government auditing environment is an important factor affecting the audit efficiency.From three aspects of politics,economy and society,selecting data from the local audit institutions in 31 provinces of China as the sample,this paper use the Tobit model to explore the impact of auditing environment on audit efficiency.Results show that:the political environment,economic environment has a significant impact on the efficiency of government audit,while social environment not.Therefore,it is very important to improve the audit efficiency of government audit related environmental factors.

Auditing environment Government audit Audit system System theory

Acquirer’s Earnings Quality,Largest Shareholder and the Choice of Payment Method

Lun Ningwen Hu Qin
（Glorious Sun School of Business and Management,Donghua University）

Abstract:The paper studies merger and acquisition（M&A）payment choices of China listed companies in 2010-2014 period, focusing on acquirer’s earnings quality and the largest shareholder aspects.The research shows that:acquiring firms with low earnings quality will finance their acquisition with stock payment method;bidders prefer cash method of M&A transactions when a bidder’s largest shareholder has an intermediate level of the stock in the scale of 20%-60%;largest shareholder may override the impact of earnings quality on the choice of payment method in M&A.High and low largest shareholder will favor stock acquisition while intermediate levels of largest shareholder will favor cash regardless of earnings quality.

Keywords:Earnings quality Largest shareholder Cash payment method Stock payment method

Compensation Justification,Executives’Background Characteristics and Earnings Management

Dai Shusong Huang Nan
（School of Management，Shanghai University）

Abstract:Based on theories about Executives’Compensation Justification and Upper Echelons,this paper takes all the A shares listed enterprises from 2011 to 2015 as the samples,studying how the executives’demand of justifying for their compensation affects earnings management.In addition,we made further study on this effects according to the nature of property rights and executives’background characteristics.The result shows that when executives have the demand of justifying for their compensation,they will manipulate earnings to make justification and conceal their selfish behaviors.This phenomenon is more obvious in private enterprises. Meanwhile,executives who are younger and with shorter tenure are more likely to manipulate earnings to justify for their compensation.

Keywords:Compensation justification Earnings management Executives’characteristics

Financing Constraints，Executive Compensation and Corporate Performance

Ye Jianmu Xie Liping
（School of Management，Wuhan University of Science and Technology）

Abstract:The studies have found that the correlation of executive compensation and corporate performance is affected by a lot of situational factors.Financing constraints will affect corporate performance by restricting enterprise principal-agent behavior,which is the important situational factor affecting the correlation of executive compensation and corporate performance.This paper’s research object is the state-owned listed companies and the paper will analyze the correlation of executive compensation and corporate performance when facing financing constraints.The results show:Firstly,the financing constraints have a significant influence on correlation of executive compensation and corporate performance.Secondly,the correlation of executive compensation and corporate performance is significant positive when the enterprise in high financing constraints,but when the enterprise in low financing constraints,the correlation is not significant.In addition,when the enterprises belong to different industries,the affects of financing constraints on correlation of executive compensation and corporate performance is different.

Keywords:Executive compensation Enterprise performance Financing constraints State-owned listed companies

Capital Structure,Economic Policy Uncertainty and Companies’Growth

Shan Dandan Yu GuoXin
（School of Economy and Trade,Xinjiang Agricultural University）