표준감사시간제도 도입 이후 감사노력의 증가가 신용등급 및 타인자본비용에 미치는 영향

This study examine whether the adoption of the Standard Audit Hours Policy (hereafter ‘SAHP’) are perceived as the improvement of audit quality by credit rating agencies and creditors. We also examine whether the increase in audit hours after introducing SAHP are perceived audit quality improvement by credit rating agencies and creditors. In addition, we are to examine whether the effect of the increase in audit hours by rank after introducing SAHP are perceived as the improvement of audit quality varies on the credit rating agencies and creditors. To this end, using KOSPI and KOSDAQ firms listed on Korean Stock Exchange during the period of 2016-2021 (i.e., 2016-2018 as the pre-adoption of SAHP and 2019-2021 as the post-adoption of SAHP). Our finding are as follows. First, we find that credit rating is increased and cost of debt is decreased after the adoption of SAHP. This suggests that after the introduction of SAHP, which credit rating agencies and creditors does are perceived as the improvement of audit quality. Second, we do not find that the increase in audit hours after introducing SAHP has a significant effect on the credit rating, while the firm’s cost of debt is decreased. Therefore, there are differences in perception of the improvement of audit quality driven by increase in audit hours after the adoption of SAHP across external information users (credit rating agencies vs. creditors). Third, we find that the increase in audit hours for professional in tax, computerized audit, and valuation among rank-position after the adoption of SAHP is associated with a lower credit rating, while the increase in audit hours for registered accountants after the adoption of SAHP is associated with a lower cost of debt. This imply that the increase in audit hours by rank after the adoption of SAHP, which credit rating agencies do not have perceived as the improvement of audit quality, while the increase in audit hours by rank after the adoption of SAHP, which creditors are perceived as audit quality improvement across rank varies. As well as, there are differences in perception of the improvement of audit quality driven by the increase in audit hours by rank after the adoption of SAHP across external information users (credit rating agencies vs. creditors). Therefore, our finding provide policy implications for the policymakers and regulatory authorities concerning SAHP. Furthermore, our findings provide novel evidence on the extent to which the overall effect of the introduction of SAHP as well as the increase in audit hours, and the increase in audit hours by rank after the adoption of SAHP directly and/or indirectly affect firm’s credit rating and cost of debt.