Family involvement, external auditing, and the cost of debt: Evidence from U.S. small firms
研究美国小企业中家族参与和外部审计如何影响债务成本，发现无外部审计时家族参与能显著降低债务成本，有审计时则效果不显著。
Small and medium-sized enterprises play important roles in modern business society but face difficulties in debt financing. The literature suggests that family involvement and external auditing can help small firms mitigate agency problems that impede access to loans. Our research examines how family involvement influences the effects of the cost of debt on different external auditing choices and how sending credible signals helps resolve the agency conflict between lenders and borrowers in small business financing. We find that when external auditing is used, family involvement does not significantly reduce the cost of debt for small firms. However, when external auditing is not used, family involvement has a significantly positive influence.