Português
The impact of the dimension of the audit firm on the cost of debt of the small Portuguese companies with voluntary audit
Event Title
14th Iberian Conference on Information Systems and Technologies, CISTI 2019
Year (definitive publication)
2019
Language
Portuguese
Country
Portugal
More Information
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Abstract
For specific Portuguese small companies is not
mandatory to have their financial statements audited. Measuring
the audit quality by the dimension of the audit firm, I analyse the
impact of voluntary audit by Big 4 firms on the cost of debt of
Portuguese small companies. I find evidence, that it cannot be
concluded that the audit quality measured by the dimension of the
audit firm influences the cost of debt of the voluntary audited
companies. This may be due to the fact that on small firms, the
quality differences between large and small audit firms decreased
when the risk of litigation is weak and therefore what matter is the
audit and not the auditor.
Acknowledgements
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Keywords
cost of debt,voluntary audit,audit quality
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
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