Abstract
Using a sample of UK firms, we investigate whether external audit quality has an informational role for firms credit score. In our general research setting, we could not find any evidence on the as...
Highlights
The objective of this paper is to investigate whether the choice of auditor impacts the credit score assigned to an entity
We use three proxies for audit quality; namely, first, industry-specialised auditor (AUD_SPEC) and we expect that hiring an auditor with relevant sector experience will add to the integrity of firms’ financial statements and would improve firms’ credit score
non-audit fees (NAF) and we expect that the joint provision of NAF might impair auditor independence, which in turn might lead to a reduction in firms credit score
Summary
The objective of this paper is to investigate whether the choice of auditor impacts the credit score assigned to an entity. Debt is considered as one of the important external sources of finance available to public companies. Alaa Mansour Zalata is academic staff member at the Accounting department, faculty of Commerce, Mansoura University, Egypt. Alaa has a PhD in Accounting from the University of Aberdeen (UK) and MRes in Accounting and Finance from the same institution. Hany Elzahar is academic member of Staff at business management division, Arab Open University, Kuwait Branch. Hany is a member of Accounting department, Faculty of commerce, Damietta University Egypt. He got both MSc and PhD in Accounting from the University of Stirling, UK
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