부산대학교 도서관

The purpose of this study is to explore the impact of auditor social connection on credit risk and the cost of debt from 2016 to 2019 in Taiwan listed companies. The results show that individual auditors who participate in more auditor social connection organizations could effectively reduce their clients' credit risk. Additionally, this study finds that when the leader auditors or non-big 4 auditors participate in more social connection organizations, their clients will face lower credit risk and the cost of debt. We also find that auditors who participate in more professional accountant associations could lead to lower credit risk of their clients relative to those participating in other clubs. Our empirical results state that enterprises could reduce their credit risk via hiring auditors with social connections. Therefore, social connection organizations could cultivate individual auditor's professional skills and technology thereby reducing their clients' credit risk.