Abstract: Is the social capital of the Issuance Examination Committee merely the right rent-seeking channel in the IPO market?Taking the application for share allotment and public additional issue of listed companies from December 1, 2003 to December 31, 2013 as research object,this paper examines the impact of social capital of the Issuance Examination Committee of CPA firm on the decision-making of refinancing audit.The research finds that the current and successive social capital owned by the CPA firms that applied for or had been hired by enterprises has significantly improved the pass rate of auditing;non-state-owned enterprises prefer to use more direct, relatively obvious effects from the incumbent members′ rights and powers, while state-owned enterprises prefer to use more covert and stable tacit knowledge acquired during their tenure.This means that the impact of social capital of the Issuance Examination Committee on the decision-making of the Issuance Examination Committee is not limited to the IPO market, but also includes the use of tacit knowledge in addition to the direct right to rent-seeking. Therefore, we should strengthen the supervision of the open refinancing market and crack down on rent-seeking through social capital of the Issuance Examination Committee.

Key words: The Social Capital of Issuance Examination Committee, the decision-making of capital allocation, tacit knowledge, rent-seeking