The impact of auditor's choice on the cost of debt : international evidence

Dissertant

al-Mahdi, al-Almi

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2009

English Abstract

This paper identifies the relationship between the auditor’s choice and the bonds ratings.

Our sample includes 823 firms from 35 countries.

The study was conducted over a period of 11 years.

An Ordered Probit regression analysis was used to identify how the auditor choice affects the probability of increasing the bonds ratings.

We find strong evidence that the auditor’s choice significantly affects the bonds ratings.

In other words, when a firm has an auditor from the big five auditing firms, the probability of having higher bonds ratings increases; this implies a low cost of debt since higher bond ratings have been proven to reduce the firm’s cost for raising funds (in the form of bonds).

The findings add more evidence to the creditors’ rights protections and how it affects the cost of debt

Main Subjects

Financial and Accounting Sciences

Topics

• Accounting
• Financial statements
• Auditing
• Business enterprises

No. of Pages

21

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-629340