IDEAS home Printed from https://ideas.repec.org/a/eee/jaecon/v78y2024i2s0165410124000466.html
   My bibliography  Save this article

Financial statements vs. FinTech: A discussion of Minnis, Sutherland, and Vetter

Author

Listed:
  • Demerjian, Peter

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.

Suggested Citation

  • Demerjian, Peter, 2024. "Financial statements vs. FinTech: A discussion of Minnis, Sutherland, and Vetter," Journal of Accounting and Economics, Elsevier, vol. 78(2).
  • Handle: RePEc:eee:jaecon:v:78:y:2024:i:2:s0165410124000466
    DOI: 10.1016/j.jacceco.2024.101716
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165410124000466
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jacceco.2024.101716?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaecon:v:78:y:2024:i:2:s0165410124000466. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jae .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.