The Value of Financial Statement Verification in Debt Financing: Evidence from Private U.S. Firms

By Michael Minnis. 2011

487 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1230b10314edf456f54cf9d7d975abbf26466978

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Citations in the corpus

Conforming Tax Avoidance and Capital Market Pressure (2019, unknown): “To construct our sample of pure-private companies, we follow Minnis (2011) and Badertscher, Shroff, and White (2013) and exclude all observations with data quality issues as well as non-U.”
Mitigating Incentive Conflicts in Inter-Firm Relationships: Evidence from Long-Term Supply Contracts (2013, background): “Further, private firms face less scrutiny from external monitors such as equity investors, regulators and auditors (Minnis [2010]). 3.3. Descriptive statistics Table 3 reports the descriptive statistics for the sample. All variables are defined in Appendix A. The average contract duration is 6.85 ye”
Does credit reporting lead to a decline in relationship lending? Evidence from information sharing technology (2018, unknown): “Moreover, many private firms do not undergo costly audits attesting to the completeness of reported liabilities (Blackwell et al. 1998; Allee and Yohn 2009; Minnis 2011; Cassar et al. 2015; Lisowsky and Minnis 2016; Minnis and Sutherland 2017).”
Externalities of Public Firm Presence: Evidence from Private Firms’ Investment Decisions (2013, unknown): “We also require firm-years to have assets and sales greater than $100,000 (Minnis, 2011).”
Mandatory CSR and sustainability reporting: economic analysis and literature review (2019, background): “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).”
Is the Risk of Product Market Predation a Cost of Disclosure (2016, background): “…companies and public firms).25 Ali et al. (2009) show that incorporating private firm data is critical to proxy for industry concentration, consistent with the importance of private firms to economic activity in the US and Europe (Badertscher et al., 2013; Minnis, 2011; Allee and Yohn, 2009).”
Auditing private companies: what do we know? (2017, unknown): “To illustrate, in the US fewer than 1% of all firms are listed and privately held companies generate over 50% of private sector GDP (Minnis 2011).”
The Information Role of Audit Opinions in Debt Contracting (2016, unknown): “These results complement the finding in prior studies that the voluntary use of auditing or the employment of Big 5 auditors is associated with a lower cost of debt (Fortin and Pittman, 2007; Lennox and Pittman, 2011; Minnis, 2011).”
Real Effects of the Audit Choice (2016, methodology): “For example, Minnis (2011) finds that by verifying financial statements, audits increase earnings quality and lower the cost of debt for U.S. private firms.”
The Role of Bank Reputation in “Certifying” Future Performance Implications of Borrowers’ Accounting Numbers (2012, unknown): “We follow the approach in Minnis (2010) and regress one year-ahead cash flows from operations on contemporaneous cash flow and accrual components of net income separately for the high and low reputation partitions.”
Low-Carbon City Construction and Corporate Carbon Reduction Performance: Evidence From a Quasi-Natural Experiment in China (2021, background): “…symbol− year level are reported in parentheses ***, ** and * indicate statistical significance at the 1%, 5% and 10% levels, respectively 1 3 (2018), Minnis (2011), we also include several control variables for the potential effect on Loanstate in model (6), including SOE, ROA, Leverage,…”