Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/9220
Title: Short-Term debt maturity structures, credit ratings, and the pricing of audit services
Authors: Gul, FA
Goodwin, J
Keywords: Audit fees
Credit ratings
Governance
Monitoring
Short-term debt maturity
Issue Date: 2010
Publisher: American Accounting Association
Source: Accounting review, 2010, v. 85, no. 3, p. 877-909 How to cite?
Journal: Accounting review 
Abstract: Short-term debt and credit ratings have benefits for financial reporting quality that may be associated with lower audit fees. Using U.S. data for 2003 through 2006, we find that short-term debt is negatively related to audit fees for firms rated by Standard & Poor's, consistent with more monitoring and better governance mechanisms in firms with higher short-term debt. Credit ratings quality is negatively related to audit fees, consistent with ratings quality reflecting a firm's liquidity risk, governance mechanisms, and monitoring from rating agencies. We also find that the negative relation between short-term debt and audit fees is stronger for firms with low-quality credit ratings, consistent with auditors pricing lender monitoring.
URI: http://hdl.handle.net/10397/9220
ISSN: 0001-4826
EISSN: 1558-7967
DOI: 10.2308/accr.2010.85.3.877
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