The Role of Auditor Choice in Debt Pricing in Private Firms

By Steve Fortin, Jeffrey A. Pittman. 2007

190 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/4ab2b8b88d0dd5d24a5ddbfb374645c775b4e913

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Citations in the corpus

Auditor choice in privatized firms: Empirical evidence on the role of state and foreign owners (2009, methodology): “We note that compared to extant evidence on private firms (e.g., Fortin and Pittman, 2007), an average firm that is fully owned by the government is associated with just an 18% probability of hiring a high-quality auditor.”
Auditor Choice in Politically Connected Firms (2014, unknown): “In our multivariate regression analysis, we control for two sets of variables known to affect auditor choice according to prior research (e.g., Mansi et al., 2004; Lennox, 2005; Choi and Wong, 2007; Fortin and Pittman, 2007; Wang et al., 2008; and Guedhami et al., 2009).”
Audit Quality and Cost of Debt Capital for Private Firms: Evidence from Finland (2011, unknown): “Fortin and Pittman (2007) were unable to find support for the value relevance of Big 4 audits in the context of pricing of public debt issues of privately-held US firms.”
Voluntary Audits Versus Mandatory Audits (2011, methodology): “Consistent with past research, we find that credit ratings are significantly higher for companies that are older, larger, and have better liquidity, whereas they are lower for companies that have worse interest coverage and”
Selection models in accounting research (2012, methodology): “…selection models to control for endogeneity in the company’s selection of a Big N or non-Big N audit firm (Kim et al. 2003; Weber and Willenborg 2003; Chaney et al. 2004; Khurana and Raman 2004; Mansi et al. 2004; Louis 2005; Fortin and Pittman 2007; Behn et al. 2008; Choi et al. 2008; Li 2009).”
The Information Role of Audit Opinions in Debt Contracting (2016, result): “While prior studies show that the voluntary use of auditing or the employment of Big N auditors is associated with a lower cost of debt (Fortin and Pittman, 2007; Lennox and Pittman, 2011; Minnis, 2011), we provide evidence on the incremental value of audit reporting to lenders.”
Auditor Independence and Audit Quality (2015, background): “Using accruals to proxy for financial reporting quality, Reynolds and Francis (2001) find that big-five firms are more conservative towards larger clients in offices.”