haku: @indexterm CASH FLOW / yhteensä: 488
viite: 102 / 488
| Tekijä: | Gul, F. A. Tsui, J. S. L. |
| Otsikko: | A test of the free cash flow and debt monitoring hypotheses: Evidence from audit pricing |
| Lehti: | Journal of Accounting & Economics
1997 : DEC, VOL. 24:2, p. 219-237 |
| Asiasana: | CASH FLOW DEBT GROWTH AUDITING PRICING COMPANIES |
| Kieli: | eng |
| Tiivistelmä: | The study examines the association btw. free cash flow (or FCF) and audit fees. The association is expected, given Jensen's argument that managers of low growth / high growth FCF firms engage in non-value-maximizing activities. These activities increase auditors' assessments of inherent risk and, in turn, audit fees and effort. Jensen also argues that debt mitigates the non-value-maximizing activities. Thus, the positive FCF / audit fees association is expected to be weaker for low growth firms with high debt than for similar firms with low debt. Regression results for a sample of low growth Hong Kong firms support these hypotheses. |
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