Debt Default Risk,Audit Quality And Debt Cost

Along with the continuous deepening of the market reform process in recent years,the central government has vigorously promoted supply-side structural reforms,and debt defaults have continued to increase.In the reform,the work of"de-leveraging"and"de capacity"has achieved initial results,and of course brought some problems.The concept of"zombie enterprise"is well known.Some of the overcapacity enterprises are bleak,but relying on low debt cost support,they can continue to survive by borrowing new debts and repaying old debts.These enterprises occupy valuable social resources and are a great challenge to market order.Debt financing is the main way for Chinese enterprises to raise funds.In order to ensure the vigorous development of enterprises and the healthy circulation of cash flow,controlling debt costs is a problem that management needs to consider carefully.For creditors,only a correct and detailed knowledge of the company's operating conditions,a reasonable judgment of the risk of the company's debt repayment,and a reasonable way to determine the cost of debt,in order to ensure that their rights and interests are not damaged,to ensure the sound development of the market.In this process,external audit will play an important role.By examining the financial status of the enterprise,the external audit can provide reasonable assurance for the fairness and legality of the financial report of the enterprise,and can effectively provide a basis for the creditor to judge the operation status of the enterprise.Therefore,it can play a role in maintaining market order and preventing financial risksThe existing research has carried out a lot of research on debt default risk and audit quality and debt cost and audit quality,but few scholars have studied the relationship between debt default risk and debt cost,although high debt default risk will lead to high debt cost.It has become everyone's consensus,but in the case of the complicated Chinese market,especially the phenomenon of"zombie enterprises"in recent years,whether the relationship between the two is still significant is debatable.At the same time,in the field of the impact of audit quality on the relationship between the two,domestic scholars also lack corresponding attentionThis paper is based on the collection of all A-share listed companies as the original sample,based on the theoretical framework of principal-agent theory and information asymmetry theory,empirical research:(1)Whether there is a positive correlation between debt default risk and debt cost;(2)Whether audit quality can affect the relationship between the two.Through the research in this paper,the effectiveness of the debt market can be tested in a large sample empirical way.At the same time,the introduction of audit quality as a adjustment item can provide creditors with a variety of perspectives to achieve financial risk prevention and regulation of market behavior.Role,to provide a certain reference for relevant market participants.