Financial Statement Quality and Debt Contracting: Evidence from a Survey of Commercial Lenders

摘要: We survey commercial bank lenders to better understand how they evaluate and react variation in financial statement quality view recent changes accounting standards. A unique aspect of this study is that our respondents focus on medium-size loans private companies. In fact, more than 90 percent the primarily make credit decisions between $250 thousand $50 million. This contrast prior archival research, which focuses very large public firms or small firms. find sample distinguish among statements terms quality, including conservatism, basis accrual patterns restatements. While general result holds throughout sample, substantially important for making larger (over $10 million) as compared (under $1 million). addition, are much likely respond low reporting with collateral guarantee requirements an increase interest rate charged. finding consistent both smaller loans. Finally, despite concerns academic literature, actually hold a neutral-to-positive most do not support current efforts exempt companies from some