Investigation of the Relationship Between Debt Structure, Credit Rating and Audit Fees in Companies Listed on the Tehran Stock Exchange

Iranian Journal of Accounting, Auditing and Finance

مقالات آماده انتشار، پذیرفته شده، انتشار آنلاین از تاریخ 24 مهر 1404

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2025.94304.1570

نویسنده

Mehdi khorramabadi^*

Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran

چکیده

This study investigates the intricate relationships between short-term debt structure, auditor credit rating, and audit fees in firms listed on the Tehran Stock Exchange (TSE) during the period 2013–2023. Drawing on a sample of 136 non-financial firms and employing panel data regression models, the research explores how debt maturity and credit quality interact to influence audit pricing. Five hypotheses are tested, focusing on the direct relationship between short-term debt and audit fees and the moderating effects of auditor rating, firm size, corporate life cycle stage, and financial reporting quality. The results show a significant positive association between short-term debt and audit fees, indicating that greater liquidity risk leads auditors to exert more effort and increase their compensation. However, this relationship is moderated by the auditor’s credit rating: while higher ratings are associated with lower audit costs overall, their interaction with high short-term debt leads to increased fees—suggesting heightened auditor caution under complex financial conditions. Additionally, the study finds that this joint effect is more pronounced in larger firms, early-stage and declining firms, and those with delayed financial reporting, highlighting the importance of contextual firm characteristics in shaping audit pricing. By integrating multi-level interaction effects and applying robust econometric models, this research contributes novel insights to the audit literature, especially within the context of emerging capital markets. The findings provide practical implications for managers, auditors, and regulators by emphasizing the strategic relevance of financial structure management, timely reporting, and auditor selection in controlling audit-related costs. Future studies are encouraged to replicate...

کلیدواژه‌ها

Audit fees؛ short-term debt؛ credit rating؛ financial reporting quality؛ corporate life cycle