Abstract
Using a sample of non-financial A-share listed companies in Shenzhen and Shanghai stock exchange between 2008 and 2010, this paper empirically analyzes the influence of corporate governance and independent audit on the cost of debt. The research found that both high-level of corporate governance and high-quality audit supervision can significantly reduce the cost of debt. And there exists a substitution effect between corporate governance and independent audit in affecting debt costs, that is to say, improve the level of corporate governance to reduce the cost of debt only established when audit quality is low, and does not hold in high audit quality. The research show that improves the level of corporate governance and audit quality is of great significance in solving financing difficulties for the enterprise.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
