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...

Purpose This paper aims to examine whether knowledge about companies switching auditors from Big 4 firms to regional firms affects commercial lending decisions. Design/methodology/approach The approach used is an experiment where bank loan officers make judgments about risk and probabilities of...