會計及資訊管理學研討會

Accounting Seminar – Audit Profession Development and Bank Loan Pricing
Dr. Stephen ZHOU, Assistant Professor, Hong Kong Baptist University

ABSTRACT
This study examines the relation between country-level development of the audit profession and bank loan pricing in a global setting. Using a sample of bank loans from 37 countries during 2000–2010, we find that stronger audit profession development is associated with lower loan spreads, and such effect is observed for Big 4 clients but not for non-Big 4 clients. We also find that the effect of audit profession development in reducing the cost of bank loans is driven by countries with strong rule of law and creditor rights, and by loans led by foreign lenders. A further analysis indicates that accounting conservatism is a channel through which the audit profession development affects bank loan pricing. Our results are robust to a battery of sensitivity tests.
  • Date: 21st October 2016
  • Time: 14:00 – 15:30
  • Venue: E22-1008
A Short Biography of Dr. Stephen ZhouDr. Stephen Zhou is assistant professor of accounting at the Hong Kong Baptist University Business School. His research focuses on auditing, corporate finance, international accounting and finance. His articles have appeared in academic journals such as Journal of International Business Studies, Journal of Banking and Finance, and Auditing: A Journal of Practice and Theory.