Research on the Effectiveness of Government Audit in Preventing Systemic Financial Risks in the Big Data Environment

Abstract

Based on unbalanced panel data from 30 Chinese provinces from 2008 to 2021, this paper examines the effectiveness of government audit in preventing systemic financial risks in the big data environment. The results show that government audit can still significantly inhibit systemic financial risks. Financial system risk accumulation plays a mediating role in this process, while the level of big data development has a negative moderating effect on the relationship between government audit and systemic financial risk prevention. Heterogeneity tests reveal that government audit has a more obvious preventive effect on systemic financial risks in the eastern and western regions, as well as in areas with low marketization levels. Accordingly, this paper recommends further promoting the digital transformation of government audit, improving the mechanism through which government audit inhibits financial risk accumulation, and implementing audit strategies tailored to local conditions.