Audit Firm Choice Impacts Company Value and Cost of Equity
The study looked at how choosing different audit firms can affect a company's cost of equity capital. They analyzed data from 99 companies on the Tehran Stock Exchange from 2009 to 2019. The results showed that the choice of audit firm and the amount of debt a company has can significantly impact its cost of equity capital. Not changing auditors also had a big effect on the cost of equity capital. Other factors they looked at didn't seem to make a difference.