Do audited firms have better access to credit?: Evidence from emerging countries
AbstractThis study aims to examine the relationship of having financial statements audited by external auditors and access to bank credit, using data from the Business Environment and Enterprise Performance Survey (BEEPS). Among firms having credit access, this research further analyses the impacts...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2195985 |
| _version_ | 1797265250140028928 |
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| author | Yaqoub Alduraywish |
| author_facet | Yaqoub Alduraywish |
| author_sort | Yaqoub Alduraywish |
| collection | DOAJ |
| description | AbstractThis study aims to examine the relationship of having financial statements audited by external auditors and access to bank credit, using data from the Business Environment and Enterprise Performance Survey (BEEPS). Among firms having credit access, this research further analyses the impacts of auditing financial statements on loan value, loan rate, and loan term (duration) by applying the Heckman two-step models with sample selection. Results show that firms with audited financial statements have better formal credit access than their counterparts. Among these, audited firms obtain bigger loan value, have lower loan rates and shorter borrowing duration, as compared to non-audited firms. Results are robust when applying the Propensity Score Matching. |
| first_indexed | 2024-03-07T14:19:23Z |
| format | Article |
| id | doaj.art-76ffa60bdce74593af39b0aa0940137e |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-04-25T00:41:48Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-76ffa60bdce74593af39b0aa0940137e2024-03-12T08:30:27ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110210.1080/23311975.2023.2195985Do audited firms have better access to credit?: Evidence from emerging countriesYaqoub Alduraywish0Department of Accounting, College of Administrative Sciences, Najran University, Najran, Saudi ArabiaAbstractThis study aims to examine the relationship of having financial statements audited by external auditors and access to bank credit, using data from the Business Environment and Enterprise Performance Survey (BEEPS). Among firms having credit access, this research further analyses the impacts of auditing financial statements on loan value, loan rate, and loan term (duration) by applying the Heckman two-step models with sample selection. Results show that firms with audited financial statements have better formal credit access than their counterparts. Among these, audited firms obtain bigger loan value, have lower loan rates and shorter borrowing duration, as compared to non-audited firms. Results are robust when applying the Propensity Score Matching.https://www.tandfonline.com/doi/10.1080/23311975.2023.2195985auditcredit accessfinancial statementsfirm and country levelsM42G21 |
| spellingShingle | Yaqoub Alduraywish Do audited firms have better access to credit?: Evidence from emerging countries Cogent Business & Management audit credit access financial statements firm and country levels M42 G21 |
| title | Do audited firms have better access to credit?: Evidence from emerging countries |
| title_full | Do audited firms have better access to credit?: Evidence from emerging countries |
| title_fullStr | Do audited firms have better access to credit?: Evidence from emerging countries |
| title_full_unstemmed | Do audited firms have better access to credit?: Evidence from emerging countries |
| title_short | Do audited firms have better access to credit?: Evidence from emerging countries |
| title_sort | do audited firms have better access to credit evidence from emerging countries |
| topic | audit credit access financial statements firm and country levels M42 G21 |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2195985 |
| work_keys_str_mv | AT yaqoubalduraywish doauditedfirmshavebetteraccesstocreditevidencefromemergingcountries |