Auditor Communication Provisions in Private Loan Agreements: Do They Matter?

Cheng, Lin; Jaggi, Jacob; Michas, Paul N.; Schatzberg, Jeffrey W.

doi:10.2139/ssrn.3433846

Cited by 9 publications

(8 citation statements)

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“…This is distinct from a ν = 8 IQH state (8 copies of the IQH root state), because the Hall conductance is different, so that the IQH and E 8 root states indeed generate independent Z factors in the classification. We might also consider an E 8 state built from charge-2 Cooper pairs, but this state is identical to 8 copies of the IQH root state, and does not need to be considered separately [65,66]. For both the IQH and E 8 root states, we choose the Z 2 symmetry to act trivially.…”

Section: A Classificationmentioning

confidence: 99%

Topological Phases Protected by Point Group Symmetry

et al. 2017

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We consider symmetry-protected topological (SPT) phases with crystalline point group symmetry, dubbed point group SPT (pgSPT) phases. We show that such phases can be understood in terms of lowerdimensional topological phases with on-site symmetry and that they can be constructed as stacks and arrays of these lower-dimensional states. This provides the basis for a general framework to classify and characterize bosonic and fermionic pgSPT phases, which can be applied for arbitrary crystalline point group symmetry and in arbitrary spatial dimensions. We develop and illustrate this framework by means of a few examples, focusing on three-dimensional states. We classify bosonic pgSPT phases and fermionic topological crystalline superconductors with Z P 2 (reflection) symmetry, electronic topological crystalline insulators (TCIs) with Uð1Þ × Z P 2 symmetry, and bosonic pgSPT phases with C 2v symmetry, which is generated by two perpendicular mirror reflections. We also study surface properties, with a focus on gapped, topologically ordered surface states. For electronic TCIs, we find a Z 8 × Z 2 classification, where the Z 8 corresponds to known states obtained from noninteracting electrons, and the Z 2 corresponds to a "strongly correlated" TCI that requires strong interactions in the bulk. Our approach may also point the way toward a general theory of symmetry-enriched topological phases with crystalline point group symmetry.

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Section: A Classificationmentioning

confidence: 99%

Topological Phases Protected by Point Group Symmetry

et al. 2017

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“…Apart from the direct access to the management of the borrowing firm, in certain instances lenders have been documented to obtain borrower‐specific information directly from the external auditor. For example, according to a recent US‐based study by Cheng et al (2019), in certain instances lenders have the ability to access borrower‐specific information through special clauses added to loan contracts. Specifically, these authors argue that contractual clauses allow the lender to request “(1) any direct communication and discussion between the lender and auditor on borrower issues, (2) provisions providing lender with copies of written communications between auditors and borrowers…” (Cheng et al 2019, 1).…”

Section: Institutional Background Related Literature and Research Que...mentioning

confidence: 99%

“…One stream of literature advocates that the auditor's report assists lenders to more accurately assess a borrower's risks because it provides credible information on the quality of the accounting numbers (Blackwell et al 1998;Christensen et al 2014) and transmits auditors' private information about the creditworthiness of borrowers (Chen et al 2016). In contrast, another stream of literature highlights that due to lenders' access to private information, they are less likely to use information incorporated in the auditor's report in loan contracting (e.g., Cheng et al 2019;Carrizosa and Ryan 2017;Baylis et al 2017). This may be of particular importance in the context of syndicated loans because they are associated with at least two types of ex ante information asymmetries (e.g., Ball et al 2008;Ivashina 2009;Bharath et al 2011;Fang et al 2016), one between the borrowing firm and the lenders and another within the syndicate of lenders.…”

Section: Introductionmentioning

confidence: 99%

Expanded Auditor's Report Disclosures and Loan Contracting*

Porumb

Karaibrahimoglu

Lobo

et al. 2021

Contemporary Accting Res

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Starting in October 2013, auditors of premium-listed firms in the United Kingdom are mandated to prepare an expanded auditor's report that provides details on audit procedures, risks of material misstatement (RMMs), and materiality thresholds. This regulatory change is important to study, because it aims to increase the informational value of the traditional, highly standardized, pass-orfail auditor's report. We examine whether the disclosures in the expanded auditor's report provide information that is relevant for adopting firms' loan contracting terms in the post-adoption period.Our results indicate that the introduction of the expanded auditor's report is associated with reduced loan spread and longer maturity for loan facilities of adopting firms relative to nonadopting UK firms. When we focus on adopting firms in the post-adoption period, we find that the number of "unique RMMs" mentioned in the auditor's report, but not in the audit committee report, are positively associated with loan spread but are not associated either with loan maturity or the number of lenders in the loan syndicate. Additional tests show that the benefits, in terms of a reduced spread, of having a lower number of "unique RMMs" accrue mostly to adopters with a poor information environment. Taken together, our results provide preliminary evidence that the expanded auditor's report disclosures contain relevant information for loan contracting in the United Kingdom. This study highlights the unique role of the expanded auditor's report in providing information relevant to lenders and supports standard setters' efforts to enrich its informational content.

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“…It is known [32] that there are no fusion categories of rank=2 with fusion rules x 2 = 1 + 2x, so [I 0 ] cannot be the label set of a fusion category. But there is a fermionic realization of the rank=2 category {1, x} with x 2 = 1 + 2x using solutions of pentagons with Grassmann numbers [7].…”

Section: Mapping Class Group Representationsmentioning

confidence: 99%

Fermionic modular categories and the 16-fold way

Bruillard

Galíndo

Hagge

et al. 2017

Journal of Mathematical Physics

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We study spin and super-modular categories systematically as inspired by fermionic topological phases of matter, which are always fermion parity enriched and modelled by spin TQFTs at low energy. We formulate a 16-fold way conjecture for the minimal modular extensions of super-modular categories to spin modular categories, which is a categorical formulation of gauging the fermion parity. We investigate general properties of super-modular categories such as fermions in twisted Drinfeld doubles, Verlinde formulas for naive quotients, and explicit extensions of P SU (2) 4m+2 with an eye towards a classification of the low-rank cases.

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Auditor Communication Provisions in Private Loan Agreements: Do They Matter?

Cited by 9 publications

References 0 publications

Topological Phases Protected by Point Group Symmetry

Topological Phases Protected by Point Group Symmetry

Expanded Auditor's Report Disclosures and Loan Contracting*

Fermionic modular categories and the 16-fold way

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