The Impact Of Internal Control And Audit Quality On Debt Financing Costs

Debt financing is the main way for external financing of listed companies in China.It is a key indicator for listed company management to consider daily operational decisions.How to reduce the cost of corporate debt financing is to maintain the healthy and stable development of enterprises and the normal operation of funds.Most companies have a top priority.Two aspects of enterprise management and accounting information are the main basis for creditors to judge their potential debt default risk.Therefore,to reduce the cost of capital use,it is necessary to improve the management capabilities of enterprises and disclose true and reliable accounting information.Internal control reflects the internal control level and risk management and control ability of the enterprise.External audit reflects the reliability of the company's financial report.These two are important mechanisms for internal and external corporate governance,but few related researches at home and abroad.Some scholars have conducted empirical research on both internal and external governance of the company.Due to the acceleration of China's interest rate marketization process and the reduction of government intervention,investors pay more attention to the company's operation management and accounting information.This paper takes the 2017 A-share listed companies in Shanghai and Shenzhen as the research sample,selects the Dibo internal control index to measure the internal control quality,and uses the 2017 CPA firm's comprehensive ranking measurement design quality and a series of financial data to measure the debt.Financing costs are used to study the correlation between the three.In this paper,descriptive statistical analysis and Pearson correlation analysis are performed on the main variables using statistical software SPSS19.0.Then,the effects of internal control and audit quality on debt financing cost were tested by linear regression.The impact of internal control on debt financing cost was further studied.Whether there will be differences in the audit quality group of different levels of wind;then internal control was studied.The impact of audit quality on debt financing costs will vary between groups of different companies' property rights.The research results of this paper are as follows:1.The internal control quality of listed companies is significantly negatively correlated with the debt financing cost.The higher the internal control quality,the lower the debt financing cost.2.The audit quality of listed companies is negatively correlated with the debt financing cost.The higher the audit quality,the lower the debt financing cost;3.When the audit quality of listed companies is different,the impact of internal control on their debt financing costs is different,and when the audit quality of listed companies is lower,the internal control of their debt financing costs The more significant the impact;4,when the property rights of listed companies are different,the impact of internal control and audit quality on their debt financing costs is different,and when listed companies are non-state,the impact of internal control on their debt financing costs is more significant.1figures,7tables,61 references.