Lijuan Yan1, Yun Xu2, Xiuxia Meng1
1Management College, Beijing Union University, Beijing, China
2School of Accountancy, Anhui University of Finance and Economics, Bengbu, China
We explore the impact of internal audit quality on corporate debt financing behavior. The study finds the higher the quality of internal audit, the larger the scale of debt financing available to enterprises, and the lower the cost of debt financing. Further analysis finds that improving internal audit quality can expand the scale of debt financing and reduce the cost of debt financing by alleviating information asymmetry. This study enriches the research on the economic consequences of internal audit and the influencing factors of corporate debt financing behavior, contributes to a more comprehensive and objective evaluation of the implementation effect of the internal audit system, and provides empirical evidence for optimizing the internal audit system.
Internal Audit Quality; Debt Financing Scale; Debt Financing Costs; Information Asymmetry
Lijuan Yan, Yun Xu, Xiuxia Meng. Will the Quality of Internal Audit Affect Corporate Debt Financing?. Academic Journal of Business & Management (2023) Vol. 5, Issue 17: 60-67. https://doi.org/10.25236/AJBM.2023.051710.
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