Audit signalling in capital markets: auditor characteristics, media coverage, and corporate cost of equity

Key Points

• This research investigates how auditor characteristics and media coverage affect the cost of equity for corporations.
• Analyzed data from capital markets to assess auditor influences
• Investigated media reporting's role in shaping public perceptions
• Conducted statistical analyses to evaluate correlations
• Strong auditor reputation is linked to lower corporate cost of equity
• Increased positive media coverage correlates with reduced equity costs
• Negative media attention amplifies the cost of equity for firms