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The Investigation of Audit Quality Impact on Cost of Debt Capital in companies listed in Tehran Stock Exchange
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Zohreh Hajiha   , Neda Sobhani |
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Abstract: (2166 Views) |
This research investigates the impact of audit quality on cost of debt capital for 91 firms listed in Tehran Stock Exchange(TSE) for the period 2004 to 2010. In this study, audit quality is measured by using audit size, industry specialist auditor and auditor tenure and the influence of these indicators is tested on the cost of debt and equity capital. Also, costs of debt of firms with unqualified audit reports compared with those have qualified audit report. The results indicate that auditor tenure has no influence on cost of debt, but audit firm size and auditor industry specialization, due to lower cost of debt capital. In addition, firms with unqualified audit report have lower cost of debt capital than firms with qualified audit report |
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| Keywords: Cost of Debt, Audit Quality, Audit firm size, Auditor industry specialization, Auditor tenure. |
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Full-Text [PDF 1363 kb]
(88 Downloads)
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Type of Study: Research |
Subject:
General
Received: 2020/09/15 | Accepted: 2013/03/21 | Published: 2013/03/21
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