Auditor choice and the cost of debt capital for newly public firms

By Jeffrey A. Pittman, Steve Fortin. 2004

937 citations recorded by the source corpus.

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Debt Capacity, Cost of Debt and Corporate Insurance (2008, neutral): “COD is a firm’s interest cost per Renminbi (RMB) of debt used.10 As in Jun and Jen (2003) and Pittman and Fortin (2004), we measure COD as (interest expense charged to the P&L account + capitalized interests) ÷ the book value of total debt.11 8We thank the referee for suggesting this point.”
Ownership concentration in privatized firms: The role of disclosure standards, auditor choice, and auditing infrastructure (2006, background): “Mansi et al. (2004) and Pittman and Fortin (2004) find that lenders demand higher yields on debt issues made by U.S. firms without Big Five auditors to compensate for the greater uncertainty about these securities.”
Analyst Following and Credit Ratings (2008, background): “Brennan and Subrahmanyam (1995) and Roulstone (2004) show that analyst following increases the liquidity of a firm’s securities, and Givoly and Lakonishok (1979), among others, show that analyst following improves the informational efficiency of stock markets.”
The impact of corporate governance on auditor choice: Evidence from China (2009, background): “…1982; Geiger, Raghunandan, & Rama, 1998; Hogon, 1997; Hudaib & Cooke, 2005; Johnson & Lys, 1990; Krishnan, 1994; Lee, Mande, & Ortman, 2004; Pittman & Fortin, 2004), with occasional studies in countries such as Australia (Beatty, 1989; Craswell, 1988), New Zealand (Firth, 1999; Firth ∗…”
Voluntary Audits and the Cost of Debt Capital for Privately Held Firms: Korean Evidence (2007, positive): “Similar to Pittman and Fortin (2004) and Francis et al.”
Foreign institutional ownership and auditor choice: Evidence from worldwide institutional ownership (2018, background): “2012; DeFond and Zhang 2014), and lower cost of debt and equity capital (Chang et al. 2009; El Ghoul et al. 2016; Gul et al. 2013; Mansi et al. 2004; Pittman and Fortin 2004; and Kim et al. 2011).”
Audit Value and Charitable Organizations (2009, background): “Thus, I find that reputation substitutes for the information effect of audit quality, similar to the findings of Pittman and Fortin (2004). 3.”
Determinants and Economic Consequences of Non-financial Disclosure Quality (2016, neutral): “In addition to our variables related to CSR disclosure and CSR performance, we follow Sengupta (1998) and Fortin and Pittman (2004) and control for the following factors.”
Auditing the auditors:Evidence on the recent reforms to the external monitoring of audit firms (2010, neutral): “In support of this assumption, prior studies find that equity and debt financing is cheaper when companies choose more reputable audit firms (e.g., Feltham et al., 1991; Pittman and Fortin, 2004).”