직급별 감사시간과 총감사시간이 기업신용등급 및 타인자본비용에 미치는 영향The Effect of the Rank-Specific Audit Hours/Total Audit Hours on Credit Ratings and the Cost of Debt
- Other Titles
- The Effect of the Rank-Specific Audit Hours/Total Audit Hours on Credit Ratings and the Cost of Debt
- Authors
- 박종일; 전규안; 이윤정
- Issue Date
- Apr-2022
- Publisher
- 한국경영학회
- Keywords
- Total Audit Hour; Rank-specific Audit Hours; Credit Ratings; Cost of Debt; Audit Quality; Audit Risk
- Citation
- 경영학연구, v.51, no.2, pp.389 - 435
- Journal Title
- 경영학연구
- Volume
- 51
- Number
- 2
- Start Page
- 389
- End Page
- 435
- URI
- http://scholarworks.bwise.kr/ssu/handle/2018.sw.ssu/42352
- DOI
- 10.17287/kmr.2022.51.2.389
- ISSN
- 1226-1874
- Abstract
- Using audit hours by rank-specific in Korean listed firms from 2014 to 2019, we examine whether there is the effect of audits effort on the credit ratings (RATING) and the cost of debt (COD), and investigate how audit effort mediates relationship between ROA and RATING (or COD). Specifically, we analyze whether external information users (i.e., credit rating agencies and creditors) perceive increase in auditor’s effort (i.e., rank-specific audit hours, total audit hours) as a proxy for audit quality or audit risk.
Overall, our results provide some evidence that the market reacts negatively to more audit hours, and the results imply that market participants perceive that more audit effort is associated to firms with the higher audit risk. We also find that the effect of more audit hours weaken the positive relation between ROA and RATING or negative relation between ROA and COD. We also find that the frequency of auditor’s communication with corporate governance is negatively (positively) associated to RATING (or COD). Thus, this study contributes to the literature on audit quality/risk by showing novel evidence that the announcement of more audit hours are perceived a proxy for audit risk rather than audit quality from rating agencies and creditors.
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Collections - College of Business Administration > Department of Accounting > 1. Journal Articles
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