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11 (1) 2021

The impact of audit opinion on cost of debt: Evidence from Vietnam


Author - Affiliation:
Nguyen Vinh Khuong - Faculty of Accounting and Auditing, University of Economics and Law, Vietnam National University Ho Chi Minh City , Vietnam
Nguyen Thi Lan Huong - Faculty of Accounting and Auditing, University of Economics and Law, Vietnam National University Ho Chi Minh City , Vietnam
Vy Bao Chau - Faculty of Accounting and Auditing, University of Economics and Law, Vietnam National University Ho Chi Minh City , Vietnam
Nguyen Ton Huong Mai - Faculty of Accounting and Auditing, University of Economics and Law, Vietnam National University Ho Chi Minh City , Vietnam
Nguyen Le Cam Thi - Faculty of Accounting and Auditing, University of Economics and Law, Vietnam National University Ho Chi Minh City , Vietnam
Cu Tong Hoai Linh - Faculty of Accounting and Auditing, University of Economics and Law, Vietnam National University Ho Chi Minh City , Vietnam
Corresponding author: Nguyen Vinh Khuong - khuongnv@uel.edu.vn
Submitted: 15-10-2020
Accepted: 18-01-2021
Published: 26-02-2021

Abstract
We consider whether the category of audit opinion an enterprise receives is pertained to the cost of debt of Vietnam corporations and how does it impact them. Proceeding from the data collected from 80 listed companies in the Vietnam stock exchange in the period of 2007 - 2017, we used a quantitative method to demonstrate the negative impact of modified audit opinion on the cost of debt. When companies receive a modified opinion, they have to pay higher interest rates and have a shorter maturity. From the results, this paper suggests some implications for the financial statement disclosure of listed firms and regulators in order to contribute to the transparency of the financial reports.

Keywords
audit opinion;cost of debt;listed company;Vietnam

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Cite this paper as:

Nguyen, V. K., Nguyen, T. L. H., Vy, B. C., Nguyen, T. H. M., Nguyen, L. C. T., & Cu, T. H. L. (2021). The impact of audit opinion on cost of debt: Evidence from Vietnam. Ho Chi Minh City Open University Journal of Science – Economics and Business Administration, 11(1), 83-93. doi:10.46223/HCMCOUJS.econ.en.11.1.1067.2021


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DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.11.1.1067.2021
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