Investigation of the Relationship Between Debt Structure, Credit Rating, and Audit Fees in Companies

Iranian Journal of Accounting, Auditing and Finance

مقاله 8، دوره 10، شماره 1 - شماره پیاپی 34، بهار 2026، صفحه 167-185   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2026.47410.1570

نویسنده

Mahdi Khorramabadi^*

Department of Accounting, Payame Noor University, Tehran, Iran.

چکیده

The present study examined the relationships between short-term debt structure, auditor credit ratings, and audit fees in companies listed on the Tehran Stock Exchange (TSE) between 2013 and 2023. An analysis of the relationships among debt maturity, credit quality, and audit pricing was conducted using data from 136 non-financial firms and panel data regression results. Five hypotheses were tested to examine the direct relationship between short-term debt and audit fees, with the moderating effects of auditor rating, firm size, corporate life cycle stage, and financial reporting quality. Audit fees were significantly correlated with short-term debt, indicating that auditors exert greater effort and increase their compensation in response to greater liquidity risk. However, this was moderated by the auditor's credit rating: higher ratings are associated with lower overall audit costs, while high short-term debt increases audit fees, suggesting greater audit caution under complex financial conditions. Moreover, this joint effect is more prominent in larger firms, early-stage companies, declining companies, and companies with delayed financial reporting, highlighting how context influences audit pricing. This research contributed novel insights to the audit literature, especially within the context of emerging capital markets by integrating multi-level interaction effects and applying robust econometric models. The findings emphasized the strategic importance of financial structure management, timely reporting, and auditor selection in controlling audit-related costs for managers, auditors, and regulators. We encourage future studies to replicate this model using more granular governance and audit-quality proxies in other institutional settings.

کلیدواژه‌ها

Audit fees؛ Credit Rating؛ Short-term Debt؛ financial Reporting quality؛ Emerging Markets

مراجع