Audit quality and debt restructuring: evidence from Italy

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE
Carlotta Magri, Pier Luigi Marchini
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引用次数: 0

Abstract

Purpose

This study aims to investigate the link between audit quality and in-court debt restructuring. The aim is to understand whether the confirmation of debt restructuring plans is affected by audit quality, which, in the light of agency theory, reduces information asymmetries between outsiders (creditors and the court) and insiders (shareholders and managers) of the debtor company.

Design/methodology/approach

A logistic regression is performed to test whether higher audit quality is associated with an increased probability of successfully completing a debt restructuring proceeding (RP). Consistent with the literature, audit quality is assessed ex ante based on auditor size, which is used as a proxy for independence. The analysis considers private Italian companies.

Findings

Audit quality positively affects debt restructuring. Among financially distressed companies, those audited by an audit company are more likely to succeed in RPs than those audited by a single practitioner. There is no evidence of a Big N effect.

Originality/value

This study fills a gap in literature as, in contrast to other financial and governance characteristics, audit quality has never been studied before as a determinant of efficient restructuring. It contributes to the literature on auditing and governance by highlighting the importance of audit quality in complex situations such as RPs, and it expands on debt restructuring literature by considering the importance of the information exchanged during RPs.

审计质量与债务重组:来自意大利的证据
目的探讨审计质量与法院债务重组之间的关系。目的是了解债务重组计划的确认是否受到审计质量的影响,根据代理理论,审计质量减少了债务人公司的外部人员(债权人和法院)和内部人员(股东和经理)之间的信息不对称。设计/方法/方法执行逻辑回归来测试更高的审计质量是否与成功完成债务重组程序(RP)的可能性增加有关。与文献一致,审计质量是基于审计师规模预先评估的,审计师规模被用作独立性的代理。该分析考虑了意大利的私营企业。审计质量对债务重组有积极影响。在财务困难的公司中,由审计公司审计的公司比由单个从业者审计的公司更有可能在rp中取得成功。没有证据表明存在大N效应。独创性/价值本研究填补了文献中的空白,因为与其他财务和治理特征相比,审计质量以前从未作为有效重组的决定因素进行过研究。它通过强调审计质量在rp等复杂情况下的重要性,为审计和治理方面的文献做出了贡献,并通过考虑rp期间交换信息的重要性,扩展了债务重组文献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
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