To read this content please select one of the options below:

Studies on the impact of accounting information and assurance on commercial lending judgments

Arnold Schneider (Scheller College of Business, 800 W. Peachtree St., Georgia Institute of Technology, Atlanta, GA 30308, USA) *

Journal of Accounting Literature

ISSN: 0737-4607

Article publication date: 14 March 2018

Issue publication date: 31 December 2018

301

Abstract

This paper reviews studies that have examined how accounting information impacts commercial lending judgments. Issues discussed involve the usefulness of accounting data in lending decisions, effects of different accounting methods on lenders’ judgments, bankruptcy and default judgments, and decision processes pertaining to the use of accounting information in lending decisions. Additionally, the paper reviews the research on how audits and other forms of assurance influence commercial loan officers’ judgments. Topics include the way perceived auditor independence influences loan officers’ judgments, the impact of financial statement audits and audit opinions on lending decisions, how internal control reports and other CPA firm reports influence loan decisions, ways in which audit report disclosures and wording impact lending decisions, how perceived auditor quality affects lending decisions, and the effects of limited assurance engagements on loan officers’ judgments.

Keywords

Citation

Schneider, A. (2018), "Studies on the impact of accounting information and assurance on commercial lending judgments", Journal of Accounting Literature, Vol. 41 No. 1, pp. 63-74. https://doi.org/10.1016/j.acclit.2018.03.005

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

Related articles