The Value of Financial Statement Verification in Debt Financing: Evidence from Private U.S. Firms.
dc.contributor.author | Minnis, Michael Craig | en_US |
dc.date.accessioned | 2010-08-27T15:15:55Z | |
dc.date.available | NO_RESTRICTION | en_US |
dc.date.available | 2010-08-27T15:15:55Z | |
dc.date.issued | 2010 | en_US |
dc.date.submitted | en_US | |
dc.identifier.uri | https://hdl.handle.net/2027.42/77814 | |
dc.description.abstract | I examine how the verification of financial statements influences lenders’ debt pricing decisions. To do so, I obtain access to 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 not only that audited firms have a significantly lower cost of debt, but also that lenders place significantly more weight on audited, compared to unaudited, 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. | en_US |
dc.format.extent | 605672 bytes | |
dc.format.extent | 1373 bytes | |
dc.format.mimetype | application/pdf | |
dc.format.mimetype | text/plain | |
dc.language.iso | en_US | en_US |
dc.subject | Audit | en_US |
dc.subject | Verification | en_US |
dc.subject | Debt | en_US |
dc.subject | Financing | en_US |
dc.subject | Private Firm | en_US |
dc.title | The Value of Financial Statement Verification in Debt Financing: Evidence from Private U.S. Firms. | en_US |
dc.type | Thesis | en_US |
dc.description.thesisdegreename | PhD | en_US |
dc.description.thesisdegreediscipline | Business Administration | en_US |
dc.description.thesisdegreegrantor | University of Michigan, Horace H. Rackham School of Graduate Studies | en_US |
dc.contributor.committeemember | Lundholm, Russell James | en_US |
dc.contributor.committeemember | Dittmar, Amy K. | en_US |
dc.contributor.committeemember | Masatlioglu, Yusuf Can | en_US |
dc.contributor.committeemember | Miller, Gregory Smith | en_US |
dc.contributor.committeemember | Nagar, Venkatesh K. | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/77814/1/minnis_1.pdf | |
dc.owningcollname | Dissertations and Theses (Ph.D. and Master's) |
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