Abstract: Audit quality, as a service provided by a third-party accounting firm, can supervise the investment activities of listed companies independently of the company. According to the theory of property rights, different economic organizations with different property rights engage in different economic activities, and the impact of audit quality on the investment efficiency of listed companies with different property rights is also different. This paper takes the listed companies in Shanghai and Shenzhen stock markets from 2014 to 2018 as samples to empirically test the relationship between audit quality, property right nature and corporate investment efficiency. It is found that audit quality has a significant negative correlation with over investment of listed companies and a negative correlation with under investment, but its effect is not obvious; in state-owned listed companies, audit quality has a more obvious inhibition effect on over investment, while in non-state-owned listed companies, audit quality can prevent under investment to some extent, but its effect is not significant. The conclusion of the study is beneficial to enlighten the stakeholders of different property rights companies, objectively understand the functions and limitations of auditors, make good use of audit services in a targeted and efficient way, and improve the investment efficiency of companies.

Key words: audit quality, property right nature, investment efficiency