Several experimental studies have found that the auditors report did not significantly influence bank lending decisions. This study employs actual data to test whether the level of reporting service influences lending decisions of Privately Held Middle Market (PHMM) companies. The results indicate that the report type significantly influences at least one critical aspect of the lending decision the amount lent. Further, the report type was found to be strongly related to the amount of collateral and the size of the company. In addition, descriptive evidence is provided on what type of reporting services are purchased by PHMM companies and what type of accounting firms are providing those services.
Much attention has been paid to the issue of enhancing students' understanding of the increasing role of database systems in accounting practice and integrating the modeling/operational aspects of such systems into the classroom. Recent surveys indicate that a number of Accounting Information Systems (AIS) professors are expanding their coverage of database topics, albeit some are only doing so on a more cursory basis. This paper reviews the changing nature of database education in AIS classes and provides supplemental active learning instructional aids to enhance the conceptual database coverage in AIS texts. The materials provide Systems professors who have time/resource constraints or limited formal training on database systems with an easy to learn and easy to adopt set of Access 2000 exercises. Students implement a pre-designed relational data model and experience the creation and use of database tables, forms, queries and macros. The materials build on the data set present in the widely used Systems Understanding Aid by Arens and Ward (1995), but it is not necessary to use them in conjunction with that case.
This paper examines the cash flow lending practices that became prevalent in the marketplace during the late 1990s and early 2000. That time frame witnessed bankers significantly deviating from historical lending models which resulted in a marked increase in risk. The detrimental effects of those practices and the repercussions experienced by banks are examined in detail. The paper concludes with suggested modifications to cash flow lending practices and lessons for cash flow lenders.
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