Studies on the impact of accounting information and assurance on commercial lending judgments
Journal of Accounting Literature
ISSN: 0737-4607
Article publication date: 14 March 2018
Issue publication date: 31 December 2018
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