Abstract
We examined the significance of the audit report in loan rating decisions using the belief revision model. We designed a laboratory experiment where the sign of the audit report is mixed with other annual financial information in a series of sequential evidence. The results of an experimental design, using 106 loan officers from international financial institutions, support the hypothesis that the qualified audit report appears to be an independent and useful piece of evidence when it is contrary to favourable financial expectations. Our findings also support that the 'recency effect' might influence international commercial loan officers' perception of the qualified audit report.
| Original language | English |
|---|---|
| Pages (from-to) | 285-304 |
| Number of pages | 20 |
| Journal | Accounting and Finance |
| Volume | 47 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2007 Jun 1 |
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All Science Journal Classification (ASJC) codes
- Accounting
- Finance
- Economics, Econometrics and Finance (miscellaneous)
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Information content and recency effect of the audit report in loan rating decisions. / Guiral-Contreras, Andrés; Gonzalo-Angulo, Jose A.; Rodgers, Waymond.
In: Accounting and Finance, Vol. 47, No. 2, 01.06.2007, p. 285-304.Research output: Contribution to journal › Article
TY - JOUR
T1 - Information content and recency effect of the audit report in loan rating decisions
AU - Guiral-Contreras, Andrés
AU - Gonzalo-Angulo, Jose A.
AU - Rodgers, Waymond
PY - 2007/6/1
Y1 - 2007/6/1
N2 - We examined the significance of the audit report in loan rating decisions using the belief revision model. We designed a laboratory experiment where the sign of the audit report is mixed with other annual financial information in a series of sequential evidence. The results of an experimental design, using 106 loan officers from international financial institutions, support the hypothesis that the qualified audit report appears to be an independent and useful piece of evidence when it is contrary to favourable financial expectations. Our findings also support that the 'recency effect' might influence international commercial loan officers' perception of the qualified audit report.
AB - We examined the significance of the audit report in loan rating decisions using the belief revision model. We designed a laboratory experiment where the sign of the audit report is mixed with other annual financial information in a series of sequential evidence. The results of an experimental design, using 106 loan officers from international financial institutions, support the hypothesis that the qualified audit report appears to be an independent and useful piece of evidence when it is contrary to favourable financial expectations. Our findings also support that the 'recency effect' might influence international commercial loan officers' perception of the qualified audit report.
UR - http://www.scopus.com/inward/record.url?scp=34250181385&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=34250181385&partnerID=8YFLogxK
U2 - 10.1111/j.1467-629X.2006.00208.x
DO - 10.1111/j.1467-629X.2006.00208.x
M3 - Article
AN - SCOPUS:34250181385
VL - 47
SP - 285
EP - 304
JO - Accounting and Finance
JF - Accounting and Finance
SN - 0810-5391
IS - 2
ER -