Analysis of the influence of audit delay on return on equity and cost of debt of Brazilian publicly traded companies
DOI:
https://doi.org/10.5007/2175-8069.2021.e72985Abstract
Within the context of the importance of accounting information for the main sources of corporate funds, the objective of the study was to analyze the impact of audit delay on Standardized Financial Statements (SFS) disclosure to investors and banking institutions. The research considered Brazilian publicly traded companies in the quarterly period from 2010 to 2017, via correlation tests, mean difference, panel data regression and quantile regression. The results indicated that there were different reactions between investors and banks, that is, audit delay did not have a negative impact on return on equity, but it was negative in terms of cost of debt. This suggests that investors and banks have different perceptions of audit delay in SFS disclosure. Thus, the study indicates to companies the need to reflect on the opportunity cost of a larger audit delay in SFS disclosure, especially when the objective is financing via banking institutions.
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