Research Article
The Impact of the Number of Key Audit Matters on the Cost of Debt Financing—— Mediation Role Based on Enterprise Transparency
@INPROCEEDINGS{10.4108/eai.27-10-2023.2341971, author={Jinping Liu and Changjiang Yu}, title={The Impact of the Number of Key Audit Matters on the Cost of Debt Financing------ Mediation Role Based on Enterprise Transparency}, proceedings={Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27--29, 2023, Tianjin, China}, publisher={EAI}, proceedings_a={ICEMBDA}, year={2024}, month={1}, keywords={number of kams; cost of debt financing; corporate transparency}, doi={10.4108/eai.27-10-2023.2341971} }- Jinping Liu
Changjiang Yu
Year: 2024
The Impact of the Number of Key Audit Matters on the Cost of Debt Financing—— Mediation Role Based on Enterprise Transparency
ICEMBDA
EAI
DOI: 10.4108/eai.27-10-2023.2341971
Abstract
The addition of key audit matters(KAMs) in the audit report can provide more useful information for investors to make decisions, and thus affect the cost of debt financing. In this paper, the sample data of A-share listed companies of Shanghai Stock Exchange from 2017 to 2022 after the implementation of the new audit report standards are studied. Taking the company transparency as the intermediary variable, the impact of the number of KAMs communicated in the audit report is tested in an empirical test on debt financing costs of listed companies. The study found that the increase in the disclosure of KAMs and the decrease in corporate transparency can increase the cost of debt financing, and corporate transparency plays an intermediary role.