Short-term debt maturity structures, credit ratings, and the pricing of audit services
Data(s) |
01/05/2010
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Resumo |
ABSTRACT: Short-term debt and credit ratings have benefits for financial reporting quality that may be associated with lower audit fees. Using U.S. data for 2003 through 2006, we find that short-term debt is negatively related to audit fees for firms rated by Standard & Poor’s, consistent with more monitoring and better governance mechanisms in firms with higher short-term debt. Credit ratings quality is negatively related to audit fees, consistent with ratings quality reflecting a firm’s liquidity risk, governance mechanisms, and monitoring from rating agencies. We also find that the negative relation between short-term debt and audit fees is stronger for firms with low-quality credit ratings, consistent with auditors pricing lender monitoring. |
Identificador | |
Idioma(s) |
eng |
Publicador |
American Accounting Association |
Relação |
http://dro.deakin.edu.au/eserv/DU:30086473/gul-shorttermdebt-2010.pdf http://www.dx.doi.org/10.2308/accr.2010.85.3.877 |
Direitos |
2010, American Accounting Association |
Tipo |
Journal Article |