Asian Journal of Research in Banking and Finance
  • Year: 2014
  • Volume: 4
  • Issue: 9

Audit Opinion, Long-Term Debt and Financial Constraints

aAssociate Professor of Accounting, Mazandaran University, Iran

bPh.D. Student of Accounting, Mazandaran University, Iran

cM.A. Auditing, Allame Tabatabaee University, Tehran, Iran

Online published on 23 September, 2014.

Abstract

In this study, we examine the economic role of the audit report by investigating how a qualified audit opinion affects the financial constraints and debt maturity. The sample of this study, includes 146 companies listed in the Tehran Stock Exchange during the period 2009 to 2013 and for processing and testing hypotheses, Estimated Generalized Least Squares (EGLS) method is used. Consistent with the monitoring role of audit opinions on accounting quality and information asymmetry view, we find that a qualified audit opinion is associated with increase in financial constraints and decrease in debt maturity.

Keywords

Qualified Audit Opinion, Audit report, Information Asymmetry, Debt Maturity, Financial Constraints