{"title":"Financial statements vs. FinTech: A discussion of Minnis, Sutherland, and Vetter","authors":"Peter Demerjian","doi":"10.1016/j.jacceco.2024.101716","DOIUrl":null,"url":null,"abstract":"<div><div>Minnis, Sutherland, and Vetter (MSV) documents a sharp decline in lenders’ collection of attested financial statements (including unqualified audits, reviews, and compilations) over the period 2002 to 2017. They attribute this change to lenders adopting new technology and new non-bank lenders entering the lending market. In this discussion, I explore several dimensions of their findings. First, I provide a framework for usefulness of financial statement information in debt contracting. Using this framework, I consider how financial statements may be useful for the small and medium loans the authors study, and how this role could be disrupted. Second, I consider how financial technology (FinTech) has disrupted traditional lending and potentially changed the role of financial statements. Finally, I consider the implications for this change on the accounting profession.</div></div>","PeriodicalId":48438,"journal":{"name":"Journal of Accounting & Economics","volume":"78 2","pages":"Article 101716"},"PeriodicalIF":5.4000,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Accounting & Economics","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0165410124000466","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Minnis, Sutherland, and Vetter (MSV) documents a sharp decline in lenders’ collection of attested financial statements (including unqualified audits, reviews, and compilations) over the period 2002 to 2017. They attribute this change to lenders adopting new technology and new non-bank lenders entering the lending market. In this discussion, I explore several dimensions of their findings. First, I provide a framework for usefulness of financial statement information in debt contracting. Using this framework, I consider how financial statements may be useful for the small and medium loans the authors study, and how this role could be disrupted. Second, I consider how financial technology (FinTech) has disrupted traditional lending and potentially changed the role of financial statements. Finally, I consider the implications for this change on the accounting profession.
期刊介绍：
The Journal of Accounting and Economics encourages the application of economic theory to the explanation of accounting phenomena. It provides a forum for the publication of the highest quality manuscripts which employ economic analyses of accounting problems. A wide range of methodologies and topics are encouraged and covered: * The role of accounting within the firm; * The information content and role of accounting numbers in capital markets; * The role of accounting in financial contracts and in monitoring agency relationships; * The determination of accounting standards; * Government regulation of corporate disclosure and/or the Accounting profession; * The theory of the accounting firm.
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