An Agency Perspective of Auditor Change in Small Firms

This paper uses an agency theory perspective to develop an understanding of the determinants of auditor change for small firms in the United Kingdom. The paper, therefore, extends the existing literature (see Williams [22] and Francis and Wilson [9]) from a consideration of auditor change for large firms in the United States to small firms in the U.K. The results indicate that small U.K. firms have a greater propensity to change their auditors subsequent to the receipt of a first-time audit qualification, to a change in the composition of their board of directors, to a change in their use of external loan capital, and when their existing loans are not secured. The results indicate some support for the agency arguments examined, though there is also evidence of auditor ‘accommodation’ being sought

The Bank Financing of Small Unlisted Firms in the UK: An Analysis of Recent Conflicts

This paper examines the characteristics of UK small firm bank finance and the causes of the frequently strained relationship between small firms and banks in the UK. Debt, credit rationing, and call option problems under the UK system are examined. The bank’s solutions including the potentially harmful “secured overdraft system” are then considered. It is argued that the majority of solutions tried by the banking system led to a heightened conflict of interest between small firms and banks during the recent recession due to the banks’ loan restructuring to avoid unnecessary risk

Investment and financing decisions and the performance of small firms

Study commissioned and funded by the National Westminster BankAvailable from British Library Document Supply Centre-DSC:98/31976 / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo

Interest Rate Premia on UK Small-Firm Bank Borrowings: A Research Note

This research note examines empirically the determinants of bank interest rate premia for a sample of UK small firms over the period 1986 to 1991. A number of testable hypotheses are formulated regarding the relationship between interest rate premia and a number of firm-specific risk and cost factors. The empirical results indicate that interest rate premia are significantly related to several of the firm-specific cost and risk factors. These results suggest that there has been some attempt to incorporate into loan pricing decisions both the direct costs associated with individual loan advances and the specific risk characteristics of the borrower. Copyright Blackwell Publishers Ltd 2000.

Small firm failure prediction A clarification of issues

SIGLEAvailable from British Library Document Supply Centre- DSC:3597.88726(AF90/05) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

The 1986 Insolvency and Company Directors' Disqualification Acts An evaluation of their impact upon small firm financing decisions

Available from British Library Document Supply Centre- DSC:3597.9795(LU-SBES-DP-AF--92/10) / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo

Corporate control The curious case of debt

SIGLEAvailable from British Library Document Supply Centre- DSC:3597.9795(LU-SBES-DP-AF--92/11) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

An agency perspective of auditor change in the UK small firm sector

SIGLEAvailable from British Library Document Supply Centre- DSC:3597.88726(AF90/01) / BLDSC - British Library Document Supply CentreGBUnited Kingdo