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Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF ACCOUNTING AND FINANCE

Auditor Choice and the Consistency of Bank Accounting: are Some Auditors Stricter than Others When Assessing the Value of a Bank’s Loan Portfolio?

Author(s): Christopher D. Hodgdon, Robert L. Porter
Citation: Christopher D. Hodgdon, Robert L. Porter, (2017) "Auditor Choice and the Consistency of Bank Accounting: are Some Auditors Stricter than Others When Assessing the Value of a Bank’s Loan Portfolio?," Journal of Accounting and Finance, Vol. 17, Iss. 2, pp. 40-54

Article Type: Research paper

Publisher: North American Business Press

Abstract:

The financial crisis of 2008 presents a natural experiment in which to study the impact of auditor choice on the loan fair-value disclosures of bank holding companies (BHCs). Using a sample of the largest 100 U.S. BHCs from 2007-2010, we examine the differences between banks’ disclosed fair value and book value of loans as a function of auditor choice, while controlling for banks’ relative financial condition. We find that being audited by Deloitte results in a more negative and statistically significant difference in the fair-value gap of bank loans relative to being audited by a non-Big-4 auditor.