The DOI matches its Crossref record; 74 of the 74 references it cites were found in a registry or an index.
The Value of Financial Statement Verification in Debt Financing: Evidence from Private U.S. Firms
Abstract
I examine how verification of financial statements influences debt pricing. I use a large proprietary database of privately held U.S. firms, an important business sector in which the information environment is opaque and financial statement audits are not mandated. I find that audited firms have a significantly lower cost of debt and that lenders place more weight on audited financial information in setting the interest rate. Further, I provide evidence of a mechanism for this increased financial statement usefulness: accruals from audited financial statements are better predictors of future cash flows. Collectively, I provide novel evidence that audited financial statements are more informative and that this significantly influences lenders’ decisions.
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Cites
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Cited by
A review of archival auditing research
DeFond, M., & Zhang, J. (2014) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2014.09.002 · Cited by 3,188
Mandatory CSR and sustainability reporting: economic analysis and literature review
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“In financial reporting, auditing plays a major role in assuring that firms apply and follow the accounting standards, which in turn makes financial reports more credible to investors (e.g., Beatty 1989; Blackwell et al. 1998; Willenborg 1999; Weber and Willenborg 2003; Minnis 2011).”
BackgroundThe Consequences of Mandatory Corporate Sustainability Reporting
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Economic Analysis of Widespread Adoption of CSR and Sustainability Reporting Standards
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Regulatory Spillovers in Common Audit Markets
Duguay, R., Minnis, M., & Sutherland, A. (2020) · Management Science · doi:10.1287/mnsc.2019.3352 · Cited by 63
Self-citation
Metadata
- Authors
- MINNIS, M.
- Venue
- Journal of Accounting Research
- Publisher
- Wiley
- Published
- 2011-03-14
- Volume
- 49
- Issue
- 2
- Pages
- 457-506
- ISSN
- 0021-8456 (ISSN-L)
- 1475-679X
- OpenAlex
- W2094262603
- Cited by
- 616
- References
- 74
- FWCI
- 68.64
- Type
- journal article
- Language
- en
- Open access
- closed
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- MINNIS, M. (2011). The Value of Financial Statement Verification in Debt Financing: Evidence from Private U.S. Firms. Journal of Accounting Research. https://doi.org/10.1111/j.1475-679x.2011.00411.x
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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