Newly Extended Audit Report and Cost of Debt: Empirical Evidence from Thailand

• 발행기관: 한국유통과학회
• 저자명: Suneerat WUTTICHINDANON Panya ISSARAWORNRAWANICH
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』The Journal of Asian Finance, Economics, and Business Vol. 9 No.4, 261~272쪽, 전체 12쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.04.30

영문 초록

This study examined the association between key audit matters (KAM) and the cost of debt. Financial records and auditors’ reports were used to collect data for the fiscal years 2016 and 2017, which were the first two years after KAM was implemented in Thailand. Samples are listed companies in Thailand, where the financial system is primarily debt-based and external auditors play an important role in maintaining financial reporting quality. The final samples for the two-year period consist of 770 observations. The KAM is measured in three aspects: the number of issues, the number of words, and the readability, while the cost of debt is measured by the ratio of interest expense to total debt. The research finds that the KAM readability is significantly and negatively related to the cost of debt. Meanwhile, the number of issues and words have no significant effect on the cost of debt. The finding suggests that auditors’ writing skills play a crucial role in the lending decisions of creditors.

목차

1. Introduction

2. Literature Review and Hypothesis Development

3. Research Design and Model Construction

4. Results and Discussion

5. Conclusion

References

키워드

Audit Report Key Audit Matter Cost of Debt Readability Thailand