Friedrich, Christian ; Quick, Reiner ; Schmidt, Florian (2024)
Auditor‐provided non‐audit services and perceived audit quality: Evidence from the cost of equity and debt capital.
In: International Journal of Auditing, 2022, 28 (2)
doi: 10.26083/tuprints-00027121
Artikel, Zweitveröffentlichung, Verlagsversion
 | Es ist eine neuere Version dieses Eintrags verfügbar. |
Kurzbeschreibung (Abstract)
There is an ongoing debate among regulators and researchers about concerns that the provision of non‐audit services (NAS) to audit clients may impair audit quality by reduced independence. In this context, there can be different perspectives on audit quality. Given recent regulatory changes in the European Union (EU) aimed to improve investor confidence in audited financial statements, it is critical to understand the association of NAS and audit quality perceptions by investors before and after the regulation. We investigate whether NAS affect shareholder and lender perceptions of audit quality, measured by the cost of debt and equity capital. For a sample of German firms, we find significant positive associations of NAS with both cost of debt and cost of equity. Other assurance and consultancy services drive this effect. We do not find this effect in the pre‐regulation period, but in the transition period when the regulation was passed but NAS restriction did not yet apply. In the post‐regulation period, it only persists for lenders. Thus, the EU regulation may have increased (or inadequately created) independence concerns for shareholders and lenders and curbed these concerns for shareholders only.
| Typ des Eintrags: | Artikel |
|---|---|
| Erschienen: | 2024 |
| Autor(en): | Friedrich, Christian ; Quick, Reiner ; Schmidt, Florian |
| Art des Eintrags: | Zweitveröffentlichung |
| Titel: | Auditor‐provided non‐audit services and perceived audit quality: Evidence from the cost of equity and debt capital |
| Sprache: | Englisch |
| Publikationsjahr: | 11 Juni 2024 |
| Ort: | Darmstadt |
| Publikationsdatum der Erstveröffentlichung: | 2022 |
| Ort der Erstveröffentlichung: | Oxford |
| Verlag: | Wiley-Blackwell |
| Titel der Zeitschrift, Zeitung oder Schriftenreihe: | International Journal of Auditing |
| Jahrgang/Volume einer Zeitschrift: | 28 |
| (Heft-)Nummer: | 2 |
| DOI: | 10.26083/tuprints-00027121 |
| URL / URN: | https://tuprints.ulb.tu-darmstadt.de/27121 |
| Zugehörige Links: | |
| Herkunft: | Zweitveröffentlichung DeepGreen |
| Kurzbeschreibung (Abstract): | There is an ongoing debate among regulators and researchers about concerns that the provision of non‐audit services (NAS) to audit clients may impair audit quality by reduced independence. In this context, there can be different perspectives on audit quality. Given recent regulatory changes in the European Union (EU) aimed to improve investor confidence in audited financial statements, it is critical to understand the association of NAS and audit quality perceptions by investors before and after the regulation. We investigate whether NAS affect shareholder and lender perceptions of audit quality, measured by the cost of debt and equity capital. For a sample of German firms, we find significant positive associations of NAS with both cost of debt and cost of equity. Other assurance and consultancy services drive this effect. We do not find this effect in the pre‐regulation period, but in the transition period when the regulation was passed but NAS restriction did not yet apply. In the post‐regulation period, it only persists for lenders. Thus, the EU regulation may have increased (or inadequately created) independence concerns for shareholders and lenders and curbed these concerns for shareholders only. |
| Freie Schlagworte: | auditor independence, cost of debt capital, cost of equity capital, financial reporting credibility, non‐audit services, perceived audit quality |
| Status: | Verlagsversion |
| URN: | urn:nbn:de:tuda-tuprints-271218 |
| Sachgruppe der Dewey Dezimalklassifikatin (DDC): | 300 Sozialwissenschaften > 330 Wirtschaft |
| Fachbereich(e)/-gebiet(e): | 01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Betriebswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Betriebswirtschaftliche Fachgebiete > Fachgebiet Rechnungswesen, Controlling und Wirtschaftsprüfung |
| Hinterlegungsdatum: | 11 Jun 2024 11:56 |
| Letzte Änderung: | 18 Jul 2024 10:35 |
| PPN: | |
| Export: | |
| Suche nach Titel in: | TUfind oder in Google |
Verfügbare Versionen dieses Eintrags
- Auditor‐provided non‐audit services and perceived audit quality: Evidence from the cost of equity and debt capital. (deposited 11 Jun 2024 11:56) [Gegenwärtig angezeigt]
 |
Frage zum Eintrag |
Optionen (nur für Redakteure)
 |
Redaktionelle Details anzeigen |
Drucken
Impressum