Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/294275 
Year of Publication: 
2023
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 10 [Issue:] 1 [Article No.:] 2175439 [Year:] 2023 [Pages:] 1-15
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study examines whether audit firm industry specialization affects the cost of debt finance of business. We hypothesize that audit firm industry specialization reduces client cost of debt since auditors with industry specialization are more likely to deter and detect questionable accounting practices and report material errors and irregularities. Thus, utilizing data from Ghanaian listed and unlisted firms, the study finds that audit firm industry specialization reduces the cost of debt. The finding is consistent with a robustness test in which an alternative measure of the audit firm's industry expertise was utilised. The study further submits that the influence of audit industry specialization on the cost of debt is more pronounced in the low-earning companies than high-earning companies, while no significant difference in impact exists between private companies and state-owned companies.
Subjects: 
audit firm
audit firm industry specialization
audit quality
cost of debt financing
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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