Abstract
This paper examines whether there is a difference in the value of voluntarily assured financial statements of private firms, depending on the availability of other information for the users of the statements. By using a within-firm estimator that completely controls for firm fixed effects, we find that the loan interest rate for private firms with voluntarily assured financial statements is lower when the firms have longer relationships with their banks. This finding suggests that the value of assured financial statements differs among the same type of users (banks), and is larger for those that accumulate soft information through long-term lending relationships. We also find that this larger value is not present when the tenure of the auditor with the client is very long.
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