The impact of voluntary audit on credit ratings: evidence from UK private firms

Dedman, Elisabeth; Kausar, Asad

doi:10.1080/00014788.2012.653761

Cited by 92 publications

(110 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…First, they may alleviate information uncertainty faced by lenders; second, the assurance provided by an audit may reduce debt monitoring and negotiation costs (Blackwell, Noland, & Winters, 1998;Kim et al, 2011). Empirical research from Korea, the United Kingdom (UK) and the USA supports these arguments (Blackwell, Noland, & Winters, 1998;Minnis, 2011;Kim et al, 2011;Lennox & Pittman, 2011;Dedman & Kausar, 2012;Kausar, Shro , & White, 2016). Hope, omas and Vyas (2011), using a 68-country sample, nd similar results.…”

Section: The Demand Side: Do Private Smes Demand Audit?supporting

confidence: 63%

“…It is argued that an external audit improves the quality and credibility of the accounts, thereby the informative value of nancial statements for third parties. While this argument is generally taken for granted, there is limited empirical evidence of the bene cial e ect of voluntary audits on accounting quality, where Dedman and Kausar (2012) and Clatworthy and Peel (2013) constitute two major exceptions. Dedman and Kausar (2012) show that voluntary audits are associated with less conservative nancial reporting.…”

Section: The Demand Side: Do Private Smes Demand Audit?mentioning

confidence: 99%

“…While this argument is generally taken for granted, there is limited empirical evidence of the bene cial e ect of voluntary audits on accounting quality, where Dedman and Kausar (2012) and Clatworthy and Peel (2013) constitute two major exceptions. Dedman and Kausar (2012) show that voluntary audits are associated with less conservative nancial reporting. Clatworthy and Peel (2013) found out that audited nancial statements of private rms are nearly half as likely as unaudited accounts to contain accounting errors.…”

Section: The Demand Side: Do Private Smes Demand Audit?mentioning

confidence: 99%

See 2 more Smart Citations

Small is big! The role of ‘small’ audits for studying the audit market

Carrera

Trombetta

2018

Rev. contab. finanç.

View full text Add to dashboard Cite

Section: The Demand Side: Do Private Smes Demand Audit?supporting

confidence: 63%

Section: The Demand Side: Do Private Smes Demand Audit?mentioning

confidence: 99%

Section: The Demand Side: Do Private Smes Demand Audit?mentioning

confidence: 99%

See 1 more Smart Citation

Small is big! The role of ‘small’ audits for studying the audit market

Carrera

Trombetta

2018

Rev. contab. finanç.

View full text Add to dashboard Cite

“…Experian, 2013;Kilsby and Williams LLP, 2011), together with that provided by Companies House (CH, 2009, p.7), is that late filing of accounts may result in inferior credit ratings. Since credit ratings may influence the cost and availability of debt finance, building on extant research (Lennox and Pittman, 2011;Dedman and Kausar, 2012), a natural extension of the current study would be to examine the effects of late filing on credit ratings. A further research extension would be to examine whether UK SMEs exercising the option (under the Companies Act) of withholding profit and loss data 34 (see Dedman and Lennox, 2009) exhibit differential reporting lag behaviour.…”

Section: Discussionmentioning

confidence: 99%

“…17 Following previous studies (e.g. Dedman and Kausar, 2012), the ratio variables RETSAL, LEV and LIQ are winsorized at the 0.01 level to alleviate the influence of outliers. Initially we did not winsorize the other non-ratio control variables; but doing so (other than for binary variables) did not alter the inferences for the models reported in Table 4, with the coefficients being similar in terms of their magnitude and statistical significance.…”

Section: Empirical Modelmentioning

confidence: 99%

The timeliness of UK private company financial reporting: Regulatory and economic influences

Clatworthy

Peel

2016

The British Accounting Review

View full text Add to dashboard Cite

This paper investigates the extent to which the timeliness of UK private companies' accounting information reflects regulatory and economic influences by studying the impact of a one month shortening of the statutory regulatory filing deadline. Using the financial reporting lag and propensity to file late as measures of timeliness, we find that although reporting behaviour is largely driven by regulatory deadlines, companies conjectured to be producing accounting information for reporting to outside investors publish their accounts significantly more quickly, and are substantially less likely to file beyond the statutory deadline (late), than their counterparts lacking similar incentives. However, in terms of this reporting lag differential, the change in regulation had a homogeneous impact. We report a significant reduction in the mean and median filing time, but an increase of 46% in the proportion of firms filing late, in the year following the regulatory change. Our results are robust to the employment of a number of different estimation methods, including matching and Huber and median regression.

show abstract

Business strategies and corruption in small‐ and medium‐sized enterprises: The impact of business group affiliation, external auditing, and international standards certification

Kyiu

2023

Bus Strat Env

View full text Add to dashboard Cite

We examine the impact of three business strategies separately and in combination on the tendency for firms to engage in corruption. Using a sample of 56,827 firm-year observations for small-and medium-sized enterprises (SMEs) over the 2006-2018 period, we find that firms with business group affiliations are more likely to engage in corrupt practices in countries with low business freedom. However, those in countries with high business freedom are less likely to do so. We also find that firms that engage the services of external auditors and adopt international standards are less likely to be corrupt, especially in countries with weak financial reporting standards. Our results also show that corruption intensity reduces even more for firms that employ the three strategies, whether we consider institutional factors or not. This result holds when we use a three-way interaction term. We conclude that the three strategies are mutually reinforcing and that firm-level and country-level efforts complement each other in mitigating corruption.

show abstract

The impact of voluntary audit on credit ratings: evidence from UK private firms

Cited by 92 publications

References 24 publications

Small is big! The role of ‘small’ audits for studying the audit market

Small is big! The role of ‘small’ audits for studying the audit market

The timeliness of UK private company financial reporting: Regulatory and economic influences

Business strategies and corruption in small‐ and medium‐sized enterprises: The impact of business group affiliation, external auditing, and international standards certification

Contact Info

Product

Resources

About