...; (2) Mechanism analysis reveals that internal auditing curbs corporate financialization through three distinct channels: reducing agency costs, enhancing accounting information quality and strengthening corporate growth potential; and (3) Heterogeneity analysis indicates that the constraining effect...

...Reiner Quick; Matthias Sattler; Daniela Wiemann Purpose The aim of the present paper is to examine the impact of agency costs on the demand for non‐audit services (NAS) in Germany. Design/methodology/approach This study uses data from German listed companies to test whether audit clients vary...