The Impact of Auditing Quality on Corporate Credit Risk: An Empirical Study on Listed Cabinets in Taiwan

• Main Authors: CHEN, HUI-MEI, 陳惠玫
• Other Authors: CHEN, SHENG-HUNG
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/v8fc4t

碩士 === 南華大學 === 財務金融學系財務管理碩士班 === 106 === 　　Using yearly data on public-listed companies in Taiwan (excluding bank, security, and insurance companies) over 2000-2017, this thesis empirically investigates the impacts of auditing quality on corporate credit risk, specifically focusing on corporate governance and financial characteristics as controlling variables. However, we consider the data structure of panel data due to firm's heterogeneity, using Panel FGLS Data Model (Panel Feasible Generalized Least Squares Data Model). The variables of auditing quality include customer importance, industry specialization, auditing term, accounting firm size, financial report restatement. The empirical results indicate that customer importance, industry specialization, auditing term significantly decrease the corporate credit risk while financial report restatement increases the credit risk. However, accounting firm size does not support the hypothesis of reducing firm's credit risk. Finally, firms with higher quality of corporate goverance significantly decrease credit risk.