Journal article
Investor Protection, Firm Informational Problems, Big N Auditors, and Cost of Debt around the World
Auditing, Vol.32(3), pp.1-30
2013
Abstract
This paper examines the effects of investor protection, firm informational problems (proxied by firm size, firm age, and the number of analysts following), and Big N auditors on firms' cost of debt around the world. Using data from 1994 to 2006 and over 90,000 firm-year observations, we find that the cost of debt is lower when firms are audited by Big N auditors, especially in countries with strong investor protection. Second, we find that firms with more informational problems (i.e., higher information asymmetry problems) benefit more from Big N auditors in terms of lower cost of debt only in countries with stronger investor protection.
Details
- Title
- Investor Protection, Firm Informational Problems, Big N Auditors, and Cost of Debt around the World
- Authors
- Ferdinand A. Gul (Author) - Hong Kong Polytechnic UniversityGaoguang (Stephen) Zhou (Author) - Hong Kong Polytechnic UniversityXindong (Kevin) Zhu (Author) - City University of Hong Kong
- Publication details
- Auditing, Vol.32(3), pp.1-30
- Publisher
- American Accounting Association
- DOI
- 10.2308/ajpt-50462
- ISSN
- 1558-7991
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99679190202621
- Output Type
- Journal article
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