Assessment of the Impact of Big 4's Audit Report on Russian Banks' Ability to Borrow in the Interbank Lending Market

The author of this paper is student of Faculty of Economic Sciences NRU HSE Bykova Maria Andreevna. The impact of audit report on Russian banks’ decisions made in the interbank lending market is the subject of this research. Banks which are acting in the interbank lending market are the object of this research. The purpose of this research is to estimate the impact of bank’s Big 4 audit report on its ability to borrow in the interbank lending market. There are 54 pages of research paper, which include introduction, 2 main chapters, conclusion, references and application. First chapter includes theoretical aspects of interbank lending market and market of audit services, literature review, survey of conditions on the markets stated above. In the second chapter the following parts of research are presented: methodology, selections, models and results of regression analysis. The relevance of this research paper is based on the following idea: banks started cutting possible costs to mitigate the negative consequences of 2014 crisis. External audit is obligatory for all credit institutions and Big 4 companies charge higher prices, which results in additional costs. It seems relevant to investigate, whether banks with Big 4 audit report get privileges in the interbank lending market, recouping the costs of expensive services.