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dc.contributor.authorle Claire, Emil
dc.contributor.authorFransson, Sofia
dc.date.accessioned2014-06-19T09:33:33Z
dc.date.available2014-06-19T09:33:33Z
dc.date.issued2014-06-19
dc.identifier.urihttp://hdl.handle.net/2077/36059
dc.description.abstractBackground and problem: Financial reports are created for the users as decision support. Stakeholders are often subjects to information asymmetry. Banks represent one of the primary stakeholders and financiers of a company, and place great emphasis on financial reports in their credit assessment process. The question is, however, how useful the financial information actually is. According to previous research, banks consider accounting information as troublesome in some respects, mostly due to accounting choices and judgments. As the newly introduced K-regulations in Sweden are mandatory from 2014, it is not clear how the choice between K2 and K3 will affect a company’s creditworthiness. Purpose: The purpose of this study is to investigate the usefulness of accounting information presented in financial reports, as a part of banks’ information need in the credit assessment process. Methodology: To achieve the purpose, a qualitative research was used. Empirical material was gathered through semi-structured interviews with respondents representing five different banks in Sweden. The respondents were bank officers with great knowledge in the credit assessment process. Secondary data formed the frame of reference, and was collected mainly from scientific articles and doctoral dissertations. Findings and conclusions: This study shows that accounting information is useful and represents one of the main components in the corporate analysis when the bank is performing credit assessment. Since the banks’ rating systems do not alter financial information; two identical companies, apart their choice of K2 and K3, may receive different ratings and consequently different interest rates. However, banks thorough corporate analysis is favorable when changes in accounting regulations are implemented. As they possess great knowledge in the company’s business, accounting choices and regulations becomes almost a non-issue.sv
dc.language.isoswesv
dc.relation.ispartofseriesExternredovisningsv
dc.relation.ispartofseries13-14-70Msv
dc.subjectAccounting, financial reports, user, bank, K2, K3, credit assessment, corporate analysis, ratingsv
dc.titleUsefulness of financial reports –A study of the information need in banks’ credit assessmentsv
dc.typeText
dc.setspec.uppsokSocialBehaviourLaw
dc.type.uppsokH2
dc.contributor.departmentUniversity of Gothenburg/Department of Business Administratioeng
dc.contributor.departmentGöteborgs universitet/Företagsekonomiska institutionenswe
dc.type.degreeStudent essay


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