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Huq, Asif
Publications (7 of 7) Show all publications
Lindgren, C., Huq, A., Li, Y., Elbe, J. & Carling, K. (2019). Current practices of CSR around the globe: An exploratory text mining study. In: : . Paper presented at 30th European Conference on Operational Research (EURO 30th), 23-26 June 2019, Dublin.
Open this publication in new window or tab >>Current practices of CSR around the globe: An exploratory text mining study
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2019 (English)Conference paper, Oral presentation with published abstract (Refereed)
National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis
Identifiers
urn:nbn:se:du-30276 (URN)
Conference
30th European Conference on Operational Research (EURO 30th), 23-26 June 2019, Dublin
Available from: 2019-06-19 Created: 2019-06-19 Last updated: 2019-06-19Bibliographically approved
Huq, A., Hartwig, F. & Rudholm, N. (2018). Do Audited Firms Have Lower Cost of Debt?. In: : . Paper presented at British Accounting & Finance Association Annual Conference and Doctoral Masterclasses, Central Hall Westminister, London, 9-11 April 2018..
Open this publication in new window or tab >>Do Audited Firms Have Lower Cost of Debt?
2018 (English)Conference paper, Oral presentation with published abstract (Refereed)
National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis
Identifiers
urn:nbn:se:du-27397 (URN)
Conference
British Accounting & Finance Association Annual Conference and Doctoral Masterclasses, Central Hall Westminister, London, 9-11 April 2018.
Note

Forthcoming

Available from: 2018-03-11 Created: 2018-03-11 Last updated: 2018-03-19Bibliographically approved
Huq, A., Hartwig, F. & Rudholm, N. (2018). Do audited firms have lower cost of debt?.
Open this publication in new window or tab >>Do audited firms have lower cost of debt?
2018 (English)Report (Other academic)
Abstract [en]

The purpose of this study is to investigate if audited financial statements add value for firms in the private debt market. Using an instrumental variable method, we find that firms with audited financial statements, on average, save 1.26 percentage points on cost of debt compared to firms with unaudited financial statements. We also find that using the big, well-known auditing firms does not yield additional cost of debt benefits. Lastly, we find that the effect of audit on cost of debt varies between industries. As such, we find that firms in industries that have been identified in previous studies to have a more complex information structure, and therefore more complex auditing process, also save more on cost of debt relative to other industries when audited.

Publisher
p. 36
Series
HUI Working Paper ; 132
Keywords
Audit reform, Audit complexity, SMEs, Private limited firms
National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis
Identifiers
urn:nbn:se:du-28407 (URN)
Available from: 2018-08-28 Created: 2018-08-28 Last updated: 2018-11-13Bibliographically approved
Huq, A., Daunfeldt, S.-O., Hartwig, F. & Rudholm, N. (2018). Free to choose: Do voluntary audit reforms increase employment growth?.
Open this publication in new window or tab >>Free to choose: Do voluntary audit reforms increase employment growth?
2018 (English)Report (Refereed)
Abstract [en]

Many European countries have abolished mandatory audits for small firms to reduce the regulatory and administrative burden for these firms. However, we still lack knowledge on whether such legislative changes affect employment growth for those firms that become free to choose to have external audits. We investigate this question using a Swedish reform that made audits voluntary for small firms fulfilling certain requirements. The reform created an almost ideal natural experiment, which we use to evaluate the effects of voluntary audits on employment growth for small firms using a difference-in-difference estimator. We find that firms which fulfilled the requirements for voluntary auditing, compared to a control group of similar firms that did not, increased their employment growth rate by 0.39%. This corresponds to 1,830 jobs being created in the year following the reform, suggesting that mandatory audits act as a growth barrier for small firms.

Series
HUI Working Papers
Keywords
Firm growth; small business economics; regulatory reform; mandatory audit
National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis
Identifiers
urn:nbn:se:du-27352 (URN)
Available from: 2018-03-07 Created: 2018-03-07 Last updated: 2018-11-13Bibliographically approved
Huq, A. (2018). How does accounting and auditing regulations affect firm growth and cost of capital?. (Licentiate dissertation). Borlänge: Dalarna University
Open this publication in new window or tab >>How does accounting and auditing regulations affect firm growth and cost of capital?
2018 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis provides an understanding of how new audit regulation affect firm growth and how audits affect the cost of capital. To investigate the effect of audit reforms on employment growth, we exploited a Swedish reform made in November 2010 that gave certain firms the option to opt out of previously imposed statutory audits. We find that firms which fulfilled the requirements for voluntary auditing, compared to a control group of similar firms that did not, increased their employment growth rate by 0.39%. Furthermore, the reform was also exploited to investigate if audited financial statements add value for firms in the private debt market. We find that firms with audited financial statements, on average, save 1.26 percentage points on cost of debt compared to firms with unaudited financial statements. Thus, the reform creates a possibility for firms that have the ambition to grow in employment to do so by not auditing, and those who want to grow by investments in capital to do so by reducing the cost of such investments by auditing. However, the current ceiling of the reform is also likely to force some firms to operate at sub-optimal levels, those without having the option to opt out of audit even though they might not accrue any benefit from auditing, at least in the short-run. One can argue that is partly due to how institutions evolve, generally slower than other actors in the society do.

Place, publisher, year, edition, pages
Borlänge: Dalarna University, 2018
Series
Dalarna Licentiate Theses in Microdata Analysis ; 8
Keywords
New institutional economics, firm growth, small business economics, regulatory reform, audit reform, mandatory audit, audit complexity, SMEs, private limited firms
National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis
Identifiers
urn:nbn:se:du-28408 (URN)978-91-85941-78-0 (ISBN)
Presentation
2018-09-25, Sal 311, Högskolan Dalarna, Borlänge, 10:00 (English)
Opponent
Supervisors
Available from: 2018-08-28 Created: 2018-08-28 Last updated: 2019-06-17Bibliographically approved
Huq, A., Daunfeldt, S.-O., Hartwig, F. & Rudholm, N. (2017). Does voluntary audit increase small firm growth?: Evidence from a natural experiment. In: EAA 2017 Abstracts: . Paper presented at European Accounting Association Annual Congress May 9-12, 2017, Valencia, Spain.
Open this publication in new window or tab >>Does voluntary audit increase small firm growth?: Evidence from a natural experiment
2017 (English)In: EAA 2017 Abstracts, 2017Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

Many European countries have abolished mandatory audits for small firms, but we still lack knowledge on whether this affects small firm growth. A Swedish reform in 2010 made audits voluntary for small firms fulfilling certain requirements, while firms that did not meet these requirements still had mandatory audits. We argue that this regulatory change created an almost perfect natural experiment, which can be exploited to evaluate the effects of the reform on employment growth using a difference-in-difference estimator. Our results show that firms who fulfil the requirements for voluntary auditing, as compared to a control group of firms that does not, increased their employment growth rates by on average 0.39%, corresponding to 5 500 jobs being created in the three years following the reform. It thus seems that voluntary audits are reducing the regulatory burden for small firms, making resources available that can be used to increase the number of employees. The current threshold levels for mandatory audits are still significantly lower in Sweden than in most other European countries, which implies that the policymakers in Sweden could create more jobs in small and medium-sized firms if they increased the size threshold levels for mandatory audits.

National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis
Identifiers
urn:nbn:se:du-24253 (URN)
Conference
European Accounting Association Annual Congress May 9-12, 2017, Valencia, Spain
Available from: 2017-02-11 Created: 2017-02-11 Last updated: 2018-11-21Bibliographically approved
Huq, A., Daunfeldt, S.-O., Hartwig, F. & Rudholm, N. (2017). The effect of audit reform on the employment growth of small Swedish limited companies: A natural experiment. In: : . Paper presented at Conference of the Multinational Finance Society April 7-9, 2017, Lemesos, Cyprus.
Open this publication in new window or tab >>The effect of audit reform on the employment growth of small Swedish limited companies: A natural experiment
2017 (English)Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

Reducing the regulatory burden for firms will free resources that can be used for productive investments. In this paper, we investigate the effect of a change in regulations, in effect abolishing statutory audits for Swedish micro firms in November 2010, on employment growth in the affected micro firms. The changes in regulations created what we argue is an almost perfect natural experiment that can be exploited to evaluate the effects of the reform on employment growth using a difference-in-difference estimator. Our results show that employment growth is higher in firms which fulfil the requirements for voluntary auditing as compared to a control group of firms of similar sizes that does not, and the positive treatment effect is found for micro firms in all Swedish counties and in all types of industries. We estimate that the reform created 1276 jobs in the three years following the reform. We thus suggest that the current threshold for statutory audits should be increased in Sweden, whose threshold levels for statutory audits are significantly lower than in most other European countries even after the 2010 changes in regulations. Such a regulatory change would, in all likelihood, lead to employment growth in the affected firms. 

National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis
Identifiers
urn:nbn:se:du-23330 (URN)
Conference
Conference of the Multinational Finance Society April 7-9, 2017, Lemesos, Cyprus
Available from: 2016-11-06 Created: 2016-11-06 Last updated: 2018-01-25Bibliographically approved
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